$3.05 And Rising: “The Worse Rains Are Yet To Come”
Fully recovered from the bacchanalia of SCAA 2011 and our Sprudge.com office trip to New Orleans, here’s a coffee futures financial update from Bloomberg:
Arabica coffee rose to the highest price in almost 14 years as adverse weather threatened crops in Colombia, the world’s biggest producer after Brazil.
Colombia’s Agriculture Ministry on May 1 said a lack of sunshine will hurt coffee crops over the next few months. Plantations also have been damaged by rain and landslides and weather experts predict the worse is “yet to come,” Hamburg- based broker Eugen Atte GmbH said April 28 in a report. Prices have more than doubled in the past year.
“With concern of excessive rains in Colombia and steady demand, coffee will continue to go even higher,” said Sterling Smith, an analyst at Country Hedging Inc. in St. Paul, Minnesota. “The scenario is very bullish.”