Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Arabica Coffee Slips With Traders Weighing Brazil Frost Risk

CommoditiesJul 27, 2021 14:08
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

(Bloomberg) -- Arabica coffee futures slipped from a multiyear high, as traders assess the risk of frost threatening crops this week in top-producer Brazil.

Futures for September delivery fell by as much as 2.6%, after rising to the highest level since 2014 on Monday. Still, more cold weather is forecast for some of Brazil’s key growing regions from Wednesday into the weekend, spurring concerns about a supply squeeze for Arabica beans favored by companies including Starbucks Corp (NASDAQ:SBUX).

Frost in Brazil, which accounts for 40% of global Arabica output, is threatening to drive coffee prices even higher amid broader worries about global food inflation and higher shipping costs as economies seek to reopen. Since July 19, Arabica futures have jumped by 32%.

Another cold snap could significantly damage already-battered coffee trees emerging from a month of extreme weather. Losses in Minas Gerais, the South American nation’s main coffee-growing region, could amount to 7% of last year’s Brazil crop, according to a Mercon report. Still, better-than-expected weather could pressure prices after the recent surge.

“It feels to me as though we are in a very precarious market environment here,” Alex Boughton a coffee and cocoa broker at Sucden Financial Ltd., said in a note. Another powerful frost could “easily” add 15-to-20 cents to prices overnight, he added.

Futures slipped 0.7% to $2.06 a pound by 11:09 a.m. London time. On Monday, they rose as high as $2.15, the highest since October 2014.

©2021 Bloomberg L.P.


Arabica Coffee Slips With Traders Weighing Brazil Frost Risk

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
mad nad
mad nad Oct 10, 2021 14:02
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The weather will remain the key word in this period of months unless another improvement as I think
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
Sign up with Email