Posted on 05/12/2022 10:56:01 PM PDT by blam
Coffee futures in New York jumped Wednesday as new weather forecasts show the world’s largest producer has increased frost risks in top growing areas.
The National Oceanic and Atmospheric Administration published new forecasts that show low temperatures in Cerrado, Parana state, and Mogiana could record below 5 degrees Celsius (41 degrees Fahrenheit) by May 16. In the south of Minas Gerais and Guaxupe, temperatures may trend even lower through May 19. All of the regions listed are top-producing areas for arabica beans.
Global coffee reporter & independent analyst Maja Wallengren said, “intense new cold front starting to move into all main 2022 Arabica coffee regions in Brazil this week with temp potentially as low as -5 C° from southern Parana, all SM + AM to NW Cerrado + NE Matas in Minas Gerais. R $JO buyers really going to stay short?”
Arabica futures in New York jumped more than 6% to $2.16 per pound on the news. Prices are up 133% since the COVID-19 low of around $1 per pound and have faded from decade highs of $2.60 in March.
The International Coffee Organization (IOC) recently slashed its global 2020/21 supply estimate to a deficit of -3.13 million bags from a 1.2 million bag surplus.
Signs of tighter global coffee supplies have pushed prices to decade highs. Elevated coffee prices may not be immediately pushed to the consumer because of hedging by large US importers.
Starbucks, which buys coffee “12-18 months” ahead, locked-in prices at the lows of early-2021 and are set to expire. This means a cup of coffee at the largest US retail coffee chain could rise further due to supply issues, among the other forms of inflation, such as labor, freight, etc…
Thank goodness I get my coffee from Thailand, Laos, and occasionally Indonesia.
Everything is lining up to create the perfect storm of inflation.
The final 7 years are being set up.
The price of everything “jumps” under Dementia Joe.
Good ole Putin “strikes” again. Chuckle.
And almost there, IMO.
What does that mean? Is it a biblical reference?
Yep
This supposedly happened back in July of last year.
Brazil Faces 10 Million Bag Loss Of Coffee: Preliminary Assessment
A wicked cold snap and massive drought in July have devastated Brazil’s coffee belt.
https://freerepublic.com/focus/f-news/3983702/posts
Just keep prepping, folks. Buy a little more each and every week and do not stop.
Given how much people are willing to pay for the tiny plastic capsules, the price of the raw beans must not matter much.
My coffee has gone up three dollars per can since I posted that last year.
What percentage of the can price is that?
About 30%. $8 to $11.
But thats pretty close to the price increases for a lot of things in the supermarket, roughly 25%.
From $6 to $9 bucks a can and the cans are 50% smaller. Do the math.
On the plus side a lot of people like myself will never be able to function in the morning without a few cups of coffee. This is turn will save a lot of fuel as people won’t be able to leave their house to go to work.
Ah the old sneaky shrink flation. I notice that a lot. Same price but the size went from 12 oz to 10 or 9 oz.
I buy the 28 oz bag of Starbucks for $15.50. That was $12.50 last year, same size.
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