Coffee With Sugar Rally on Brazil Concerns to Defy Oil Collapse
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Defying the rout in oil prices, the coffee and sugar markets are rallying because of supply concerns in Brazil, the world’s top producer and exporter of the so-called soft commodities.
Those raw materials helped prevent the Bloomberg Commodity Index of 22 energy, agriculture and metal prices from slumping to a 12-year low amid a collapse in crude and fuel. The broad gauge has tumbled to the lowest since March 2009, and a drop of an additional 1.4 percent will send the measure to a level last seen in November 2002. In 2014, arabica coffee soared 50 percent, the most among index components, amid the most-severe drought in decades.