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Coffee Prices Jump As “Intense New Cold Front” Threatens Top-Producer Brazil
Zubu Brothers ^ | 5-13-2022

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…


TOPICS: Society
KEYWORDS: brazil; coffee; coldfront; prices
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1 posted on 05/12/2022 10:56:01 PM PDT by blam
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To: blam

Thank goodness I get my coffee from Thailand, Laos, and occasionally Indonesia.


2 posted on 05/12/2022 11:06:10 PM PDT by markomalley (Directive 10-289 is in force)
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To: blam

Everything is lining up to create the perfect storm of inflation.


3 posted on 05/12/2022 11:06:25 PM PDT by jimwatx
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To: jimwatx
How To Prepare For Food Shortages, Hard Times On A Shoestring Budget: Preppers’ Advice
4 posted on 05/12/2022 11:09:25 PM PDT by blam
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To: jimwatx

The final 7 years are being set up.


5 posted on 05/12/2022 11:32:25 PM PDT by Secret Agent Man (Gone Galt; not averse to Going Bronson.)
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To: blam

The price of everything “jumps” under Dementia Joe.
Good ole Putin “strikes” again. Chuckle.


6 posted on 05/12/2022 11:33:24 PM PDT by SmokingJoe
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To: Secret Agent Man

And almost there, IMO.


7 posted on 05/13/2022 12:38:23 AM PDT by metmom (...fixing our eyes on Jesus, the Author and Perfecter of our faith…)
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To: Secret Agent Man

What does that mean? Is it a biblical reference?


8 posted on 05/13/2022 1:04:56 AM PDT by Cobra64 (Common sense isn’t common anymore.)
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To: Cobra64

Yep


9 posted on 05/13/2022 1:16:49 AM PDT by Secret Agent Man (Gone Galt; not averse to Going Bronson.)
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To: blam

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


10 posted on 05/13/2022 2:36:58 AM PDT by BiglyCommentary
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To: blam

Just keep prepping, folks. Buy a little more each and every week and do not stop.


11 posted on 05/13/2022 2:49:46 AM PDT by joma89 (Buy weapons and ammo, folks, and have the will to use them.)
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To: blam

Given how much people are willing to pay for the tiny plastic capsules, the price of the raw beans must not matter much.


12 posted on 05/13/2022 3:26:26 AM PDT by FarCenter
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To: BiglyCommentary

My coffee has gone up three dollars per can since I posted that last year.


13 posted on 05/13/2022 5:13:05 AM PDT by blam
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To: blam

What percentage of the can price is that?


14 posted on 05/13/2022 5:20:25 AM PDT by BiglyCommentary
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To: BiglyCommentary

About 30%. $8 to $11.


15 posted on 05/13/2022 5:29:08 AM PDT by blam
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To: blam

But thats pretty close to the price increases for a lot of things in the supermarket, roughly 25%.


16 posted on 05/13/2022 5:33:43 AM PDT by BiglyCommentary
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To: BiglyCommentary

From $6 to $9 bucks a can and the cans are 50% smaller. Do the math.


17 posted on 05/13/2022 5:33:47 AM PDT by oldasrocks
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To: BiglyCommentary

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.


18 posted on 05/13/2022 5:36:00 AM PDT by oldasrocks
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To: oldasrocks

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.


19 posted on 05/13/2022 5:41:03 AM PDT by BiglyCommentary
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To: oldasrocks

I buy the 28 oz bag of Starbucks for $15.50. That was $12.50 last year, same size.


20 posted on 05/13/2022 5:42:50 AM PDT by BiglyCommentary
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