Defying Gravity Coffee Surges to 26-Month High on Brazil

[Purveyor]

By Marvin G. Perez and Morgane Lapeyre Apr 22, 2014 2:31 PM ET

After surging 19 percent the past four weeks, coffee is up again.

Futures jumped to the highest in more than two years today, after drought damage in Brazil prompted Volcafe Ltd. to cut its outlook for the crop in the South American country, the world’s top grower and exporter.

The worst Brazilian drought in decades ravaged plants earlier this year, and production of arabica beans will be 18 percent lower than projected, according to Volcafe, a unit of commodity trader ED&F Man Holdings Ltd. Coffee futures jumped as much as 8.3 percent today, driving volatility to the highest since 2000.

“People are realizing every day that there’s damage, and that the losses will be hard to quantify,” Hernando de la Roche, a senior vice president at INTL FCStone in Miami, said in a telephone interview. “Traders are jittery because of the uncertainty about the Brazilian harvest and what it would mean to world supplies.”

more...

http://www.bloomberg.com/news/2014-04-22/coffee-surges-to-highest-in-26-months-on-global-supply-outlook.html

[jberryhill]

1. “Traders are jittery"

Well that explains where the coffee has been going.

[MADem]

2. Oh, you kid! nt

[pinboy3niner]

3. LOL!

I wonder what was their first clue?

Coffee trader

[cthulu2016]

4. Well, I'd certainly pay extra for Defying Gravity Coffee

[jberryhill]

5. I used to keep a supply in my fallout shelter

But I had to move the coffee out, because eventually the fallout took over all the space.

[JaneyVee]

6. Defying gravity? I thought only Red Bull gave you wings.

[pinboy3niner]

7. But coffee apparently gives you a 26-month high. nt