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Brazil’s Coffee Areas Brace for Another Cold Snap

By: CommodityNetwork Team - USA, CommodityNetwork USA

CoffeeNetwork

Brazil’s Coffee Areas Brace for Another Cold Snap

CoffeeNetwork (New York) – Following two frost events that have impacted about 11% of the country’s Arabica producing areas, according to a CONAB study, Brazil’s coffee belt is bracing for the possibility of yet another cold front. Freezing temperatures could return to the Center-South of the country tonight and into tomorrow.

This would be the third frost event so far this month and temperatures at the lowest levels since 1994.

The adverse weather also comes after a significant drought earlier this year, which left the trees in a vulnerable state.

Many analysts believe this could be devastating to the coffee crop and the global supply picture, as this will certainly have a strong impact on the productive potential of the 2022-2023 Brazilian coffee crop.

The extent of the damage is still unclear, with estimates ranging from losses of 1.5 to 6 million bags.

StoneX will be conducted our own assessment in the coming days.

Arabica futures have surged about 35% since the end of June as a result.

Alexis Rubinstein

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