Increase in the global price of coffee and sugar

Global coffee and sugar prices hit record highs on Thursday (Sept 26) as investors focused on drought-hit Brazil, the biggest producer of both commodities, despite weather forecasts still pointing to dry conditions. Brazil is experiencing one of the worst droughts in its history. As a result, farmland fires have occurred in some sugar producing areas, while Arabica coffee is even more affected as the crop is in its flowering stage. While some weather models are predicting rain in Brazil, it is likely to materialize in mid-to-late October, and the forecast for Brazil through October looks largely negative, analysts said. Coffee dealers and industry experts say that if the rains come, the trees in Brazil could revive, but the situation is ...