Prices for a pound of Arabica coffee rose 6 percent on Friday to $2.05 a pound on the New York Stock Exchange for futures contracts. It was the first time since October 2014 that the price exceeded 2 dollars per pound. In London, prices for Robusta, mostly used for instant coffee, reached their highest level in the past three years.
The madness in the coffee market has been going on for some time. Over the week, Arabica coffee rose 27 percent in value, the strongest seven-day increase since 1999.
Frost damage mainly affects young shrubs, which can hinder production for years. It is the worst frost in two decades. Brazil was last hit by very cold temperatures in 1994, when coffee prices rose to a record high.
The frost is a second blow to plantation owners in Brazil, who also had to deal with severe drought a few months ago. This had an effect on the production of maize and sugar.
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Severe frost in Brazil pushes coffee prices up to top in six years | Financial
Source link Severe frost in Brazil pushes coffee prices up to top in six years | Financial