While the much needed moisture helped Brazilian crops, some analysts expect prices to remain elevated due to extensive damage.
“It’s a mistake to suppose that coming rains will solve the problems we’ve had,” Washington Rodrigues, the president and chief executive officer of the Alfenas, Minas Gerais-based Ipanema, said in the article. “Once vegetative growth is lost, you don’t recover it.”
Coffee is the best-performing commodity of 2014, surging on drought conditions in Brazil, which some analysts expecting the first global shortage in five years. [Brazil Drought Supporting Coffee ETNs, with Futures Trading at 2-Year High]
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.