FEARS THAT BRAZIL’S coffee bean production may be hampered by dry weather pushed coffee futures to a 13-year high last week, the Wall Street Journal reports.
Although Brazil is in line for a record harvest this year, bean roasters are worried that next year’s crop will not be so fruitful.
News about this year’s harvest helped to bring prices back down a day after they shot up last Monday.
Some US retailers increased the price of coffee to cope with the price jump. Maxwell House owner Kraft Foods raised prices by 1%.
A rise in consumer demand for coffee is helping to increase the demand for coffee stock. Despite a bumper crop from Brazil this year, demand will keep prices high.
Columbia, the world’s third-largest coffee bean producer, lost almost a third of its annual output last year due to adverse weather.
Roasters will be watching the weather closely to see if dry weather and high temperatures in Brazil will damage future harvests.
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