Draught in Brasil has caused coffee prices to fly high. High temperature with low chances for rain in upcoming days, that is how the forecast for Sao Paulo, with nearby Mogiana region, being one of the major coffee producing regions in the country, looks like. Coffee producers, investors and people involved in physical trading observe how the situation evolves with tension. For some it means gains, for some loses. Draughts that Brasil has been suffering for, already made the prices high. On NYMEX Arabica prices has been up by 44%. These are biggest monthly gains since 19 years! Brasil is the biggest producer of Arabica beans, that is the reason for worries for the loss of quality and quantity of beans to be harvested. If the unsavory weather condition will maintain, the prices are going to remain under demand pressures.
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