Frosts in Brazil, downpours in Ghana: prices for coffee and cocoa are rising again

Coffee prices on commodity exchanges rose 16% in one day last week on news of frost in the Brazilian provinces of Minas Gerais, Mogiana and Parana, showing the largest daily increase since 2000.

Traders fear bad weather in the heart of Brazil’s coffee industry will hit crops, posing a major challenge to already low market inventories.

Although some of the gains were recouped over the next two days, the price of a pound of coffee is currently 33% higher than a month ago.

The cocoa market has also seen prices rise, reaching a six-month high in recent days amid heavy rains in Ghana and Ivory Coast.

By Editor

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