Futures File: Farm Aid Program; Coffee Market Jitters

From: helenair.com

Coffee prices dripped to a three-month low on Friday, trading under $1.03 per pound.

The commodity has been extremely wild during the COVID-19 pandemic, with five moves of 20%-plus so far this year.

Demand and prices surged as Americans hoarded groceries, including their daily caffeine fix, pushing prices near $1.30 per pound in March. Over the last few months, demand has been falling as consumer use up supplies at home.

Meanwhile, the Brazilian currency, the real, has fallen to record low prices. Brazil is the world’s second largest coffee grower, and as its currency collapses, it pulls down prices of Brazilian-produced commodities, like sugar, soybeans, and coffee.
Despite the current low levels, economists warn that market jitters could send coffee flying high again. Brazil’s currency is tanking due to a worsening coronavirus outbreak that could threaten coffee supplies.

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