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Money and Markets: Investing Insights

Bad weather leads to increased coffee prices

Business Glance
Salt Lake Tribune – United States

Coffee rose to a seven-year high Friday in New York and jumped to a 10-year high in London on renewed concern that crops will be damaged by weather in Brazil and Vietnam, the world’s biggest growers.

Above-average temperatures are expected and no rain will fall through Oct. 21 in Brazil, the world’s largest grower, prolonging a dry spell that began more than two months ago, said forecaster Meteorlogix LLC.

Wet weather in Vietnam’s southern coffee belt also may cut supplies, Meteorlogix said.

Coffee prices have jumped 30 percent in New York since mid May.

”On two different sides of the world, weather is really squeezing these exporters,” said Sean Broderick, an analyst with Weiss Research in Jupiter, Fla. ”Exports are going down, and use is going up.”

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