Traders are now speculating that the harsh weather conditions will persist into February and potentially cause crop losses, further dampening supply and pushing up coffee prices.
Consumers are already feeling the higher prices as they buy their morning jolt. For instance, Starbucks Corporation (NasdaqGS: SBUX) has fallen 8.3% since the start of the year.
iPath Dow Jones-UBS Coffee Total Return Sub-Index ETN
For more information on coffee, visit our coffee category.
Max Chen contributed to this article.