News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • $ARKK down to a fresh three month low but finding some support on this confluent fibo level. If the rates theme continues could add more pressure here https://t.co/vfi4AHZKHd
  • tech side of the $USD forecast already starting to fill in with today's bullish breakout 😎 https://t.co/vHVn9WtWKX
  • I just finished my USD 4Q fundamental forecast with @JStanleyFX (who did the techs) at the end of last week. Today certainly jazzes up my assessment
  • The S&P 500 has opened with a sharp gap lower while the Dollar pushes an 11 month high. DailyFX's @JohnKicklighter talks about volatility, debt limits, and Fed forecasts! https://t.co/xNr8VZi1SC
  • $SPX trying to hold support after failing at resistance yday $SPY $ES currently about 4% off of the all time high https://t.co/uo5ohs01UU
  • Nasdaq tumbles 2% $NDX
  • The ICE's trade-weighted $DXY Dollar Index is at an 11 month high today. Notably, its largest component - $EURUSD - has not slipped the August low https://t.co/RbkyJVC2Oq
  • Stocks extend fall, Dow Jones down 1% following worse-than-expected US Consumer Confidence #trading $DJIA
  • Big enough disappointment to heap onto the risk aversion but not bad enough to restart speculation of a delayed November taper from the FOMC. Net net, further bearish pressure on $SPX https://t.co/oprOLVTdQX
  • The $SPX has opened today with its biggest bearish gap since last Monday's tumble. Officially squashes the recovery momentum and now we are more balanced in facing fundamental event risk - bullish or bearish https://t.co/hW5U62hWez
Coffee Prices at 6-Year High as Extreme Cold Weather Hits Brazil

Coffee Prices at 6-Year High as Extreme Cold Weather Hits Brazil

Margaret Yang, CFA, Strategist

Coffee Price Outlook

  • Arabica coffee futures advanced to the highest level seen in more than six years
  • Analysts forecast a significant draw in coffee inventories as supply falls this and next year
  • The freeze was the most widespread and severe in more than 25 years

Coffee C Futures Traded in ICE – Day Chart

Coffee Prices at 6-Year High as Extreme Cold Weather Hits Brazil

Chart by TradingView

Coffee C futures contracts – the world’s benchmark for Arabica coffee – surged to the highest level seen since December 2014. This happened after extreme cold weather hit Brazil’s major coffee fields. Temperatures in south Minas Gerais – the country’s most productive region - fell below zero degree Celsius, causing frost and freeze. This may severely impact coffee plants’ yield for this and next year. The usual average temperature at this time of the year in the region is at around 20 degree Celsius.

Brazil is the world’s top coffee exporter, contributing around 16% of the world’s coffee shipments during 2020 (chart below). Its major importers include the US (18.4%), Germany (16.8%), Italy (10%) and Japan (+7.7%). Arabica accounts for 70% of its total production, and Robusta accounts for the remaining 30%.

Weather forecasts suggest that unusual weather conditions could persist until the end of this month, paving the way for prices to aim at higher levels should the market anticipate wider damage. Technically, 200 may serve as a psychological resistance, breaching which may open the door for further gains toward 225 – the 2014 high.

The World’s Top 10 Coffee Exporting Countries During 2020

The World's Top 10 Coffee Exporters During 2020

1. Brazil: US$5 billion (15.9% of total coffee exports)

2. Switzerland: $2.9 billion (9.1%)

3. Germany: $2.6 billion (8.2%)

4. Colombia: $2.5 billion (8%)

5. Vietnam: $2.3 billion (7.5%)

6. Italy: $1.7 billion (5.4%)

7. France: $1.5 billion (4.8%)

8. Honduras: $1.1 billion (3.5%)

9. Belgium: $904.8 million (2.9%)

10. Indonesia: $821.9 million (2.6%)

Source: worldstopexports.com

--- Written by Margaret Yang, Strategist for DailyFX.com

To contact Margaret, use the Comments section below or @margaretyjy on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES