A frost that fell over several coffee-growing regions in Brazil last week may cut the country’s output by almost 1 million bags next season, according to Archer Consulting in a Bloomberg report.
The regions affected by the unseasonably low temperatures include the Minas Gerais state, Sao Paulo and northern Parana. Minas Gerais is Brazil’s largest arabica coffee-producing state.
“Some market participants are currently calculating a loss slightly smaller than 1 million bags for next season,” Rodrigo Costa, a contributor to Sao Paulo-based Archer, said in a weekly report.
The frost should only serve to drive prices up, as worldwide demand continues to increase.
The full story: Bloomberg