Severe cold weather is threatening coffee crops in Brazil, the world’s largest producer, and subsequently, Arabica coffee prices climbed another 10 percent on Monday, after increasing nearly 20 percent last week.
Recent frosts have damaged fields in the main Brazilian coffee belt and additional cold fronts are in the forecast. Such conditions are known to damage or even kill coffee trees.
Brazilian government food supply agency Conab noted the recent frosts had affected 150,000 to 200,000 hectares — approximately 11 percent of the country’s total Arabica crop area.
“This marks the first time since 1994 that the country has experienced such a weather event,” coffee trader I & M Smith said in a market update, referring to the July 20 harsh frosts.
Arabica coffee futures have risen by about 35 percent since the end of June, which could translate to major brands raising prices in the coming weeks.
