Coffee Surges as Hurricane Snags and Brazil Heat Add to Worries
- Brazil’s key area of Minas is set for dry, hot weather ahead
- Traders watch for impacts to demand from Covid-19 lockdowns
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Arabica coffee extended its monthly surge as the aftermath of Hurricane Ida brings supply-chain snags and adverse weather forecasts point to more stress ahead of beleaguered crops in top supplier Brazil. Sugar also gained.
Weekend rains brought relief to Brazil’s central regions including Mato Grosso do Sul and parts of Parana and Sao Paulo, though it didn’t reach the top growing region of Minas Gerais, said Donald Keeney, senior meteorologist for Maxar Technologies Inc. Major arabica areas of Sao Paulo and Minas may also face dry conditions and above-normal temperatures in the next two weeks, according to Somar Meteorologia.