Brazil is likely to endure below-average amounts of rain, which will reduce growth and production prospects, Thus far this month, coffee futures have climbed as much as 21 percent amid the ongoing heat wave and dry rainy season as additional crops in Brazil take on damage.
"I know that there is a problem, we are aware of that, but at the moment we can't measure it," export manager Jayme Leme Neto with Terre Forte Exportacao e Importacao de Café in Sao Joao da Boa Vista, Brazil told the news source on Tuesday. "We will wait for rains to stabilize, and that will take another 15 to 20 days, to do another crop survey. We see that there are losses."
At 10:33 a.m. on Tuesday, coffee futures were up 5.9 percent, an 0.084-cent lift to $1.507 per pound.
Reuters reports the South American nation had rains late last week that snapped six weeks of drought.
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