Coffee futures extend gains and hit a new session high a short while ago of $1.41/lb; coffee is up 40% since Nov 6, up 24% since Jan 27
As I noted yesterday, severe heat and dryness in Brazil has threatened its coffee supply and has been a key catalyst in coffee futures climbing higher in recent sessions. The extremely unfavorable growing weather stems from a high-pressure system coming out of the Atlantic Ocean, which has created strong, hot winds.
In Brazil's largest city, Sao Paulo, among other cities such as Rio de Janeiro, January is normally the wettest month. Instead, it was just recorded at the hottest January in decades. The capital of Rio Grande do Sul, Porto Alegre, recorded the hottes January since record keeping began in 1916.
From Jan 27 alone, coffee futures are up 24% to $1.41/lb here (from $1.14) due to Brazil. Since Nov 6, when coffee futures were at $1.01, which was a low not seen since December 2008, coffee futures are up 40%.
