JULY 26 (SpillingTheBeans)–Arabica coffee futures surged as much as 18.75 cents per pound to a fresh 7-year-high of $2.2030/lb in early session Monday at the ICE exchange in New York as the overwhelming reports of evidence showing massive frost damage to most coffee regions in Brazil continue to flood social media and news sites, sending the market into a frenzy of panic buying to cover contracts for 2022 and part of 2023 delivery. Defaults are already expected to come.
Most futures contracts for 2022 and the first half of 2023 were trading around the $2.20/lb-mark, as the market is preparing for a FULL WEEK of nerves with the latest cold front — the 4th intense wave of cold weather with frost hitting Brazil’s coffee regions this cycle alone since late June — is forecast to bring freezing temperatures for four consecutive days starting Thu July 29th and expected to hit the entire main coffee belt in Brazil, the world’s largest grower and exporter.
The current frost is the biggest and most damaging frost to hit Brazil since 1978 and has already caused massive damage across most of Minas Gerais state, including top regions Southern Minas and Cerrado Mineiro, and the states of Sao Paulo and Parana.
Stay tuned as SpillingTheBeans continue to follow events. . .