Coffee prices have soared on international markets. This has alarmed investors who see how the South American giant could, due to climate issues, have problems with its crops, which would have an impact on prices worldwide.
Although crops have not been damaged by the low temperatures so far, the threat is causing great concern in the markets.
Coffee prices soared 7% on Monday in international markets due to fears of unexpected frosts in the producing regions of Brazil, which supply 30% of global coffeeSince August last year, coffee prices have increased by 80%, driven by uncertainty about the impact of climate change on the crop.
The recent price increase reflects concerns about light frosts recorded over the weekend in southern Brazil. Although temperatures were not low enough to damage crops, A new cold wave is expected to affect the areas of Rio Grande do Sul, Santa Catarina and Paraná this weekAccording to Trading Economics, although the current impact of the frost is minimal, uncertainty is generating caution among traders.
In addition to frost, previous rains could cause premature flowering of coffee, reducing the harvest in the mentioned regions. Thiago Cazarini, president of Cazarini Trading, highlighted the growing concern about the possibility of production errors in this highly volatile environment.
The challenges of coffee cultivation
The challenges do not end there: the drought has also affected coffee production, creating more uncertainty about the coming year. Germán Bahamón, president of the National Federation of Coffee Growers of Colombia, He expressed his solidarity with Brazilian producers, noting that extreme events exacerbated by climate change highlight the vulnerability of the coffee-producing belt.
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Bahamón warned that the current adversities could destabilize the global coffee supply and affect the balance between supply and demand. This could raise prices globally, benefiting producers with regular harvests.s, but also putting global consumption at riskIn response, Colombian coffee growers are seeking alternatives to mitigate risks and ensure the sustainability of the industry amid these challenges.
For Bloomberg, the increase in the price of coffee on Monday is one of the largest of the year. Although crops have not been damaged by the low temperatures so far, the threat is causing great concern in the markets.
Source: Ambito
