Bloomberg Quicktake: Now published this video item, entitled “Rare Cold Snap in Brazil Threatens Global Coffee Supply” – below is their description.
Price swings for arabica coffee are the biggest in nearly two decades with traders nervously tracking the approach of a cold wave that’s threatening global supplies.
Futures for the high-end beans have surged 56% this year, making it one of the best performers among commodities.
“The market has to be on edge,” said Nick Gentile, managing partner for NickJen Capital Management in New York. “You can’t be short here.”
Temperatures will begin to descend in the next 24 hours in southern Brazil, with the highest risk of frost coming between Thursday and Friday morning, according to Maxar Technologies Inc. Coffee and cane areas of Parana are especially vulnerable, with temperatures dropping to about 27 degrees Fahrenheit. The chill will last a few hours, said senior meteorologist Donald Keeney.Bloomberg Quicktake: Now YouTube Channel
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