Posted on 07/13/2021 7:41:06 AM PDT by Diana in Wisconsin
Global coffee prices are climbing and threatening to drive up costs at the breakfast table as the world’s biggest coffee producer, Brazil, faces one of its worst droughts in almost a century.
Prices for arabica coffee beans—the main variety produced in Brazil—hit their highest level since 2016 last month. New York-traded arabica futures have risen over 18% in the past three months to $1.51 a pound. London-traded robusta—a stronger-tasting variety favored in instant coffee—has risen over 30% in the past three months, to $1,749 a metric ton, a two-year high.
Brazil’s farmers are girding for one of their biggest slumps in output in almost 20 years after months of drought left plants to wither. Brazil’s arabica crop cycles between one stronger year followed by a weaker year. Following a record harvest in 2020, 2021 was set to be a weaker year, but the drop is more severe than expected.
“I’ve been growing coffee more than 50 years, and I’ve never seen as bad a drought as the one last year and this year,” said Christina Valle, a third-generation coffee grower in Minas Gerais, Brazil’s biggest coffee-growing state. “I normally take three months to harvest my coffee; this year it took me a month,” she said.
Brazil’s total coffee harvest this year is expected to drop by the biggest year-over-year amount since 2003, according to the U.S. Department of Agriculture. Its arabica crop is forecast to be almost 15 million 132-pound bags smaller than in 2020.
Others are guarding for an even larger slump. Dutch agricultural bank Rabobank expects the harvest to be 17 million bags smaller, while commodities brokerage ED&F Man, whose Volcafe arm is one of the world’s largest coffee traders, expects a decline of more than 23 million bags.
(Excerpt) Read more at wsj.com ...
"Coffee lovers could still find a reprieve. Brazil’s spring rains, which typically fall in September, will be crucial for determining whether damaged coffee plants can recover and produce enough beans during next year’s harvest, said Steve Pollard, a coffee analyst at brokerage Marex.
The alternative could see prices rise even higher, he said. Coffee plants take about 2½ years to develop, and farmers can’t respond quickly by simply planting more crops. 'If there is a significant deficit then prices could skyrocket,' he said."
Can chocolate prices be far behind? Same growing conditions and regions, mostly. :(
These headlines are making me jittery!
Bought 50 lbs. of my favorite Indonesian a month ago, and it went up 20% a week after my order.
Folks, this inflation is already well over 10%.
Buckle up!
"Coffee prices soar because of climate change."
People would pay if it was $20 a cup.
No “Inflation out of control due to Climate Change, not spending...”
I stand corrected.
It's about a 20% decline, according to a trade rag. Which also mentions last year was an all-time record.
I can switch to tea and be satisfied. Mostly my morning cup of Joe is used to shock my bowels, mostly😊
RE: “Brazil’s spring rains, which typically fall in September, will be crucial”
The Coffee Song sung by Frank Sinatra
https://www.youtube.com/watch?v=zTbJBnkRkFo
Way down among Brazilians
Coffee beans grow by the billions
So they’ve got to find those extra cups to fill
They’ve got an awful lot of coffee in Brazil
You can’t get cherry soda
Cause they’ve got to fill that quota
And the way things are I’ll bet they never will
They’ve got a zillion tons of coffee in Brazil
No tea or tomato juice
You’ll see no potato juice
The planters down in Santos all say no no no
The politician’s daughter
Was accused of drinking water
And was fined a great big fifty dollar bill
They’ve got an awful lot of coffee in Brazil
In a sense, they were the gateway drug.
Coffee is easily the best part of my day. It's not the caffeine. It's just so enjoyable and ritualistic.
Never fear wages are increasing.....
inflation and prices is like a dog chasing its tail.
“Coffee is easily the best part of my day. It’s not the caffeine. It’s just so enjoyable and ritualistic.”
I totally agree. I brew decaf now because my BP was showing slightly elevated and I wanted to see if it would help. Plus, I’m one to drink an entire POT in the course of the day, so I was pretty jittery...though I got a LOT done each day, LOL!
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