Coffee prices are up 7.8% to $US1.34 a pound today. A severe drought in Brazil this year has traders worried about supply constraints due to crop damage.
Brazil’s coffee largely comes from the south east — which includes Sao Paulo, Minas Gerais, and Parana. And it’s this part of the country that has been hit some of the most severe weather. January was also the hottest month on record in parts of Brazil.
Coffee prices are up about 21% this year.
Here’s a look at the run up in coffee prices in January:
Here’s a look at the cracked ground of Jaguary dam in Braganca Paulista, about 62 miles from Sao Paulo: