Brazil is not the only major coffee producer in the developing world and South America’s largest economy is far from the only one that has recently been decked by slumping currencies. Colombia and Vietnam, both among the world’s coffee producers and both dealing with weak currencies, could also look to boost shipments. Colombia, South America’s second-largest economy behind Brazil, has already been doing so.
Increased supply could be good news for coffee buyers such as Starbucks, but it is not good news for the downtrodden JO.
iPath DJ-UBS Coffee TR Sub-Index ETN
ETF Trends editorial team contributed to this post.