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Brazil Drought Drives Arabica Prices Higher

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http://buyorganiccoffee.org/1186/brazil-drought-drives-arabica-prices-higher/ Brazil Drought Drives Arabica Prices Higher The worst drought in Sao Paulo state in Brazil in 84 years could leave the 9 million person city of Sao Paulo without city water within 100 days according to a report on the Weather Channel. Brazil's largest city could run dry in less than 100 days if the city's government doesn't act, Brazil's Public Ministry said. São Paulo, a city of more than 9 million people, is facing one of its worst water shortages in years, brought on by the worst drought to hit São Paulo state in 84 years, the Associated Press reports. But the drought and its effects are not limited to the cities. Brazil produces a third of the coffee in the world and forty-four percent of the Arabica coffee. A Brazil drought drives Arabica prices higher. Arabic coffee futures are up on expectations of a smaller harvest in Brazil according to the Wall Street Journal. Coffee futures prices surged more than 4% to the highest level in four months on Tuesday, as dry weather in Brazil raised worries that the world's biggest grower would reduce the next harvest. Arabica-coffee prices have gained 89% this year as Brazil's worst drought in decades hurt the development of coffee cherries, prompting growers, exporters and other industry members to slash their estimates for the current crop. USDA Report The USDA Coffee Update from June 2014 forecasted a rise in coffee prices due to the drought in Brazil. World coffee production for 2014/15 is forecast to decline 1.5 million bags from the previous year to 148.7 million due primarily to a weather related shortfall in Brazil. However, the reduction is expected to be partially offset by rebounding production in Colombia and Central America. Global bean exports and consumption are forecast at record levels, drawing inventories down. The good news for lovers of Colombian organic coffee brands is that Colombian production is likely to be up. The bad news is that coffee leaf rust, la roya, has ravaged crops in Central American nations like Nicaragua. The other bad news is that your cup of organic coffee is likely to be more expensive in the coming year. A large part of this is the fact that growers in Central America are spraying heavily to protect their plants against the leaf rust. This will remove substantial quantities of beans from the organic category. When Will Retail Prices Rise? There are already price increases by Starbucks and Folgers but these folks buy early and have prices set by contract in advance. However, as the supply of good quality Arabica coffee dwindles, prices are likely to go a lot higher in the next year. Although Colombian production is likely to be back up by 2 million bags to around 12 million bags, Brazil will likely see its production fall by 5 million bags to around 33 million. (These are 60 kg = 132 pound bags of coffee beans.)

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  • 1. Brazil Drought Drives ArabicaPrices HigherBy: www.BuyOrganicCoffee.org

2. The worst drought in Sao Paulo statein Brazil in 84 years could leave the 9million person city of Sao Paulowithout city water within 100 daysaccording to a report on the WeatherChannel.By: http://buyorganiccoffee.org/1186/brazil-drought-drives-arabica-prices-higher/| 3. Brazil's largest city could run dry inless than 100 days if the city'sgovernment doesn't act, Brazil'sPublic Ministry said.By: http://buyorganiccoffee.org/1186/brazil-drought-drives-arabica-prices-higher/| 4. So Paulo, a city of more than 9million people, is facing one of itsworst water shortages in years,brought on by the worst drought to hitSo Paulo state in 84 years, theAssociated Press reports.By: http://buyorganiccoffee.org/1186/brazil-drought-drives-arabica-prices-higher/| 5. But the drought and its effects are notlimited to the cities. Brazil produces athird of the coffee in the world andforty-four percent of the Arabicacoffee.By: http://buyorganiccoffee.org/1186/brazil-drought-drives-arabica-prices-higher/| 6. A Brazil drought drives Arabica priceshigher. Arabic coffee futures are up onexpectations of a smaller harvest inBrazil according to the Wall StreetJournal.By: http://buyorganiccoffee.org/1186/brazil-drought-drives-arabica-prices-higher/| 7. Coffee futures prices surged morethan 4% to the highest level in fourmonths on Tuesday, as dry weather inBrazil raised worries that the world'sbiggest grower would reduce the nextharvest.By: http://buyorganiccoffee.org/1186/brazil-drought-drives-arabica-prices-higher/| 8. Arabica-coffee prices have gained89% this year as Brazil's worstdrought in decades hurt thedevelopment of coffee cherries,prompting growers, exporters andother industry members to slash theirestimates for the current crop.By: http://buyorganiccoffee.org/1186/brazil-drought-drives-arabica-prices-higher/| 9. USDA ReportBy: http://buyorganiccoffee.org/1186/brazil-drought-drives-arabica-prices-higher/| 10. The USDA Coffee Update from June2014 forecasted a rise in coffee pricesdue to the drought in Brazil.By: http://buyorganiccoffee.org/1186/brazil-drought-drives-arabica-prices-higher/| 11. World coffee production for 2014/15 isforecast to decline 1.5 million bagsfrom the previous year to 148.7 milliondue primarily to a weather relatedshortfall in Brazil.By: http://buyorganiccoffee.org/1186/brazil-drought-drives-arabica-prices-higher/| 12. However, the reduction is expected tobe partially offset by reboundingproduction in Colombia and CentralAmerica. Global bean exports andconsumption are forecast at recordlevels, drawing inventories down.By: http://buyorganiccoffee.org/1186/brazil-drought-drives-arabica-prices-higher/| 13. The good news for lovers ofColombian organic coffee brands isthat Colombian production is likely tobe up.By: http://buyorganiccoffee.org/1186/brazil-drought-drives-arabica-prices-higher/| 14. The bad news is that coffee leaf rust,la roya, has ravaged crops in CentralAmerican nations like Nicaragua.By: http://buyorganiccoffee.org/1186/brazil-drought-drives-arabica-prices-higher/| 15. The other bad news is that your cup oforganic coffee is likely to be moreexpensive in the coming year.By: http://buyorganiccoffee.org/1186/brazil-drought-drives-arabica-prices-higher/| 16. A large part of this is the fact thatgrowers in Central America arespraying heavily to protect their plantsagainst the leaf rust.By: http://buyorganiccoffee.org/1186/brazil-drought-drives-arabica-prices-higher/| 17. This will remove substantial quantitiesof beans from the organic category.By: http://buyorganiccoffee.org/1186/brazil-drought-drives-arabica-prices-higher/| 18. When Will Retail Prices Rise?By: http://buyorganiccoffee.org/1186/brazil-drought-drives-arabica-prices-higher/| 19. There are already price increases byStarbucks and Folgers but these folksbuy early and have prices set bycontract in advance.By: http://buyorganiccoffee.org/1186/brazil-drought-drives-arabica-prices-higher/| 20. However, as the supply of goodquality Arabica coffee dwindles, pricesare likely to go a lot higher in the nextyear.By: http://buyorganiccoffee.org/1186/brazil-drought-drives-arabica-prices-higher/| 21. Although Colombian production islikely to be back up by 2 million bagsto around 12 million bags, Brazil willlikely see its production fall by 5million bags to around 33 million.(These are 60 kg = 132 pound bags ofcoffee beans.)By: http://buyorganiccoffee.org/1186/brazil-drought-drives-arabica-prices-higher/| 22. As Brazil drought drives Arabicaprices higher it will likely drive theprice of organic Arabica beans muchhigher.By: http://buyorganiccoffee.org/1186/brazil-drought-drives-arabica-prices-higher/| 23. Maybe it is time to buy green organicArabica beans from Colombia andstock up!By: http://buyorganiccoffee.org/1186/brazil-drought-drives-arabica-prices-higher/|