Coffee prices are the highest they’ve been in six years due to an extreme frost in Brazil’s coffee farming region, according to Business Insider.
This frost is set to hurt next year’s coffee crop in Brazil’s largest coffee region according to Business Insider, causing prices to sky rocket.
Predictions for arabica beans in the New York stock market increased to $2.08 a pound, according to the Wall Street Journal. Prices have not shot up this much since 2014. (RELATED: This Highly-Rated Coffee Maker And Grinder Set Are 20% Off!)
Farmer Joao Paulo Rodrigo, 33, picks coffee beans on his family farm in Forquilha do Rio, municipality of Dores do Rio Preto, Espirito Santo, Brazil, on November 23, 2017. (Photo credit should read MAURO PIMENTEL/AFP via Getty Images)
This is the second bout of bad weather to hit the region this year. This spring, the rainy season also saw a shortage in rain, harming the 2021 crop with a major drought. Traders are now worried that this frost will hurt the 2022 coffee crop and as a result.
“I normally produce 12,000 bags, and now I think I’ll lose about 8,000,” José Marcos Magalhães, president of the Minasul Coffee Cooperation, said.
Magalhães told the Wall Street Journal that he expects to lose about two-thirds of his crop, maybe more due to the weather conditions during this year’s growing season. Futures by the New York stock market have been pushed up by 30% in July as a result of the expected coffee shortage.