LONDON/NEW YORK (Reuters) – Arabica coffee prices rose more than 10 percent on Monday after jumping nearly 20 percent last week, reaching their highest level in nearly seven years, as unusually cold weather threatened coffee crops in the world’s largest producer, Brazil. .
A preliminary estimate by the Brazilian government’s Food Supply Agency last week indicated that last week’s frosts affected an area of 150,000 to 200,000 hectares, or about 11 percent of the country’s total arabica crop area.
“This is the first time since 1994 that Brazil has experienced such weather,” said coffee traders, referring to the severe frosts that occurred on the 20th of July.
London Commodity (LON:) Arabica coffee futures rose sharply on Monday, with the September contract jumping to a peak of 2.152 per pound, the highest level since October 2014. Arabica coffee contracts have gained about 35 percent since the end of June.
(Prepared by Wajdi Al-Alfi for the Arabic Bulletin)
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