Coffee prices are exploding again. Futures are spiking, sending prices up 8% for the day to $US2.00 a pound.
“Coffee prices are crashing up,” tweeted trader Kevin Ferry, chief market strategist at Cronus Futures Management.
There isn’t an obvious reason for what’s been driving prices in the last hour.
A severe drought and record temperatures in Brazil had markets concerned about major crop damage. Brazil is the world’s largest coffee exporter and produces 40% of the world’s coffee. There has been some concern that will drive up costs for companies like of Starbucks.
Prices were at a two-year high of $US2.0065, and are up 81% since the start of 2014, reports Wall Street Journal’s Leslie Josephs.
Here’s a look at the run-up in coffee prices today: