The price of coffee soared 10% in New York this Thursday, the highest rise that has been registered for this raw material since the beginning of 2014, to reach the highest price in the last six years, affected by droughts and frosts that threaten coffee plantations in Brazil, the largest producer of the world.
“Coffee has risen this week due to the unusual and intense frosts in Brazil, “explained the president and chief investment officer of Teucrium Trading, Sal Gilbertie, to Marketwatch.” Vietnam and Brazil have been having several problems, which has caused coffee supply is a bit tight as Brazil’s frosty season begins“he added.
(Read: Colombian economy would grow 7.5% this year, according to BBVA).
During the July season, coffee plants are in bloom and vulnerable, he said, so this month always carries higher risks, but “the worst market fears have come true this year.”
And it is that an unusual cold wave, in which temperatures below zero were recorded, has hit the heart of Brazil’s coffee zone this week, which is expected to significantly affect next year’s harvest.
(See: Calling for central banks to help protect the environment).
In addition, Brazilian producers recently warned of one of the largest production drops in two decades due to low rainfall. A) Yes, coffee futures contracts for September delivery rose 17.7 cents in the New York Coffee, Sugar and Cocoa Market this Thursday, or 10%, to settle at $ 1.94 per pound, so in the last month it has risen more than 21%.
On July 12, the US Department of Agriculture already warned of a significant rise in prices due to poor harvests and increased demand, and pointed to the possibility that it would impact consumers internationally .
According to the US authorities, demand for grain is expected to exceed production for the first time since 2017, with a consumption of 165 million bags of coffee in 2021, a million and a half more than in the previous year, and with a production of 164.8 million bags.
(See: World economy, to the swing of optimism and uncertainty).
The increase in demand is related to the change in habits that occurred during the pandemic in many Western countries, where the purchase of coffee machines in households increased due to the closure of coffee shops.
At the national level, the domestic price of The purchase of the 125-kilogram load of coffee reached $ 1,790,000 this Thursday, an amount never seen before by national producers.
“If on Wednesday July 21 we were surprised with a price of $ 1,645,000, what will we say about this Thursday with the publication of $ 1,790,000. Unbelievable the price increase from one day to the next”, Said in a trill the general manager of the National Federation of Coffee Growers of Colombia, Roberto Vélez Vallejo.
“Joy for the producers of Colombia and sadness for the growers of Brazil. Climate change is present”, He specified in his message.
As the leader had explained, The frosts in the neighboring country have the coffee market nervous and Colombian producers have benefited from this.
EFE AND PORTFOLIO