(Bloomberg) Coffee climbed to a one-week high in New York on worries that surging energy costs and cool weather in Brazil will further threaten supplies.
Arabica futures rose as much as 1.3%, adding to Tuesday’s jump of almost 4%.
By Tatiana Freitas (Bloomberg) Coffee futures reached the highest in ten years in New York amid mounting concerns over tight supplies and space aboard ships. Arabica prices have more than doubled.
Coffee surges to 7-year highs with more cold headed for Brazil
Coffee surges to 7-year highs with .
Arabica coffee futures are hitting fresh highs and extending a dramatic rally with more crop-destroying cold temperatures heading to Brazil, the worlds top grower.
Prices for the high-end beans favored by Starbucks Corp. and other cafe chains have surged more than 30% in a week, and will eventually top $3 a pound, according to Judy Ganes, a consultant with decades of experience in the industry. The last time prices topped $3 was in 2011.
Those sky-high prices are because coffee trees in Brazil were weakened by a drought and then pummeled by two frosts in less than a month. Freezing temperatures last week especially hurt young trees, which will need to be trimmed or replanted. That could affect output for years to come, including slashing next year s harvest by as much as 5.2 million bags, according to an Ecom Research report seen by Bloomberg. A bag weighs 60 kilograms, or 132 poun