Drought disrupts the global futures markets

Published 2024년 9월 9일

Tridge summary

Brazil is facing severe drought conditions, with high temperatures and low humidity expected to persist, leading to a red alert for dry weather in several states. The ongoing drought, especially in the Amazon region, could logistically isolate Manaus and impact the formation of the next coffee harvest. This, coupled with climate events and logistics issues, is causing delays in coffee shipments and increasing costs for exporters. Consequently, coffee quotes in the financial markets had significant losses, with both Arabica and Robusta contracts closing with negative balances.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Climate problems persist around the world. In Brazil, the drought continues. Forecasts indicate that high temperatures and low relative humidity will continue this week. Climate: São Paulo, Minas Gerais, Mato Grosso, Goiás, Mato Grosso do Sul and the Federal District have a red alert for dry weather (Inmet). According to the European Copernicus Observatory, the summer of 2024 in the Northern Hemisphere will be the hottest on record. On Thursday (5), China also recorded the hottest August since 1961. The federal government sees a risk that the drought affecting the Amazon will lower the level of rivers to the point of logistically isolating Manaus – making it impossible to transport goods by river to Manaus, a city with 2.3 million inhabitants. The Solimões River reached its lowest level in history in the stretch that passes through Tabatinga (AM), according to a report released by the SGS - Brazilian Geological Service on Friday, the 30th, and published by the newspaper O Estado ...

Source: Cafepoint