(ZEROHEDGE) – Coffee prices have been in a tight trading pattern for much of this year and at the highest levels since the commodity boom a decade ago. Poor harvest outlooks and tighter global supplies could send prices even higher.
Let's first examine the world's largest coffee exporter, Brazil – its top-producing areas of Parana, Sao Paulo, and Minas Gerais are expected to produce poor harvests because of drought and frost. This means global supplies will tighten further, resulting in what could be even more coffee inflation for U.S. consumers.
According to Bloomberg, "'Very dry weather over Brazil's major arabica-growing regions during the second half of August added to drier-than-normal conditions the region has seen' due to the La Nina weather phenomenon, the Hightower Report said."
Meanwhile, adverse weather conditions have hurt coffee production in neighboring Colombia, another major producer. Producers in Honduras, Guatemala, Nicaragua, and Costa Rica also show crop stress signs.
The post Could poor coffee harvests send prices even higher? appeared first on WND.
