The ICE-New York futures contract for Arabica coffee rose sharply on Monday, to a new high in more than six years, according to Reuters.
Frost causes damage mainly in new planting areas, starting to bear fruit…
Futures on ICE – New York surged on Monday to a more than six-and-a-half year high, on fears of a strong frost in Brazil last week that could cause major damage to plantations. coffee in the world’s largest coffee producer and exporter.
Another cold air mass is forecast this weekend.
September Arabica coffee futures closed up 18.8 cents/lb, or 9.9%, to 207.80 cents/lb, after hitting 215.20 cents/lb, the highest since October 2014.
Severe frosts recorded in rural Brazil last week affected more than 200,000 hectares (495,000 acres) of Arabica coffee farms, or 11% of the country’s total Arabica coffee area. the world’s leading coffee producer.
Commerzbank said: “The reason for the increase in prices was due to a cold spell in Brazil where frost hit major Arabica growing areas last week, particularly in Minas Gerais, the coffee-producing state. biggest”.
The executive also said that there will be a chance of frost in some coffee growing areas by the end of this week.
Coffee is an extremely frost-sensitive plant, as it will defoliate, forcing the plant to grow again the following season, while heavy frosts can cause more severe damage and even death.
The price of Robusta coffee for September term closed up 65 USD, or 3.4%, to 1,964 USD/ton.
Mai Vy (follow Reuters)
