Sumary of Coffee futures prices jump 10%, the biggest 1-day gain in over 7 years:
- Coffee futures soared 10% on Thursday, with prices posting their largest single-session gain since early 2014 and their highest settlement in more than six years, as drought and frost threaten coffee crops in Brazil, the world’s largest coffee producer.
- “Coffee is up this week due to unusually heavy frost in Brazil,” said Sal Gilbertie, president and chief investment officer at Teucrium Trading.
- “Vietnam and Brazil have been having problems here and there, which had coffee supplies running a touch tight going into this year’s Brazil frost season,” he told MarketWatch.
- July is when coffee trees are flowering and “vulnerable” in Brazil,” he said.
- ” Brazil needed a good crop to “buffer somewhat low coffee supplies, and this frost event has eliminated the possibility of rebuilding coffee supplies for another year,” said Gilbertie.
- “The economy is waking up from COVID and needs more coffee, but the weather is definitely not cooperating in Brazil.
- ” The most-active September coffee futures contract KCU21, +0.70% KC00, +0.70% rose 17.7 cents, or 10%, to settle at nearly $1.94 a pound on the ICE Futures U.S. exchange.