Additionally, unseasonal precipitation over the past month has led to early flowering in coffee trees, which would affect next year’s output. Historically, the main flowering period in Brazil is in October and November after the September rains.
“There are market participants who don’t really realize the extent of the damage. Some are in denial,” a specialist at a large coffee merchant said in the article.
iPath Dow Jones-UBS Coffee Total Return Sub-Index ETN
For more information on the coffee market, visit our coffee category.
Max Chen contributed to this articlei.