Prices of coffee, this year’s worst-performing major agricultural commodity, may get a boost from La Nina as the weather phenomenon threatens Brazil’s next crop.
After a bumper 2020 harvest, La Nina is escalating the risk of a decline in output next year as most crops, already dry from months of below-average rain, endure scorching temperatures.
La Nina occurs when the surface of the Pacific Ocean cools, triggering an atmospheric chain reaction that stands to roil weather around the globe. In Brazil, an agricultural powerhouse, very dry and hot weather is clouding the outlook for everything from arabica coffee to oranges, sugar and soybeans. In Colombia, another coffee-growing country, La Nina tends to bring adverse above-average rains.