Brazil is the largest producer of coffee in the world, representing 40 percent of global production, and recent freeze damage is expected to drive global coffee ending stocks down to their lowest level since 2012. Over three-days last week, the September ICE coffee futures price rose from $156.40/37,500 pounds to $193.55, a nearly 24 percent increase. Because of the large loss of young trees, the reduced stocks are expected to last for a few years and has pushed deferred coffee contracts to even higher prices. Weather-related impacts have generally made coffee prices more volatile. Although not a necessary food item, a significant number of coffee drinkers will be paying more for their morning Joe in the coming years.
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What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...
