An odd cold weather, with temperatures dropping to unprecedented levels in minutes, dealt a huge blow to Brazil’s coffee region, damaging trees and harming prospects for next year’s crop.
- Agricultural products across the Western hemisphere have been beset by the unusually adverse weather all season. Brazil is the world’s largest producer of coffee as it has the most conductive climate for production of coffee.
- The sudden frost triggered a close to 13% surge in coffee prices, a 6.5 years high. Farmers, brokers, and analysts were assessing their crops on Wednesday after the reports that the cold snap might be stronger than reported.
- Farmers such as Airton Gonçalves estimates the production in 2022 will fall to around 1,500 bags from normal 5,500 bags.
Broker Thiago Cazarini, states preliminary estimates from agronomists and exporters points to a likely reduction of around 1 to 2 million bags in 2022’s crop.
EUR USD down -0.03%