“It has really not been since 1994 that a major freeze hit Brazil coffee,” says Jim Roemer, author of the BestWeather agricultural newsletter . A double in price in the futures market likely would translate into at least a doubling price on the high street. What caused the rally is the poor weather in Brazil which has devastated the coffee crop. Demand for coffee likely won’t sink, but supply has fallen dramatically, so up prices will go. If you want to take a punt try buying the iPath Bloomberg Coffee (JO) exchange-traded note which tracks the price of coffee.

Source: Forbes July 28, 2021 20:26 UTC