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Coffee Prices Surge as Weather Threatens Brazilian Production
USAgNet - 07/29/2021

Arabica coffee prices rose 10% more this week after jumping nearly 20% last week, which is the highest in nearly seven years as unusual cold weather threatens coffee crops in the world's largest producer Brazil.

Reuters reports that severe frosts last week damaged a large part of fields in the main Brazilian coffee belt and a new polar air mass is forecast to move over the same areas later this week, which will be the third strong cold front to hit crops this year.

Coffee trees are extremely sensitive to frost, which can cause severe damage and even kill trees completely. If a farm needs to replant trees, production would take around three years.

Preliminary estimates from the Brazilian government's food supply agency Conab said that last week's frosts had affected 150,000 to 200,000 hectares - about 11% of the country's total arabica crop area.


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