Heavy rain in Central America has taken a large toll on the area’s coffee growers which in turn has pushed up the price of Coffee futures. Coffee crops have been damaged by heavy rains and winds which have knockedleaves off coffee trees which have left unripe berries exposed to the elements. In other cases ripened coffee falls into soaked soil which makes them hard to harvest and often so damaged that they become impossible to sell.
According to the Wall Street Journal coffee futures have jumped by 5.7% after following a nine-month low earlier in the month.
Based on current trading prices coffee has reached $2.36 per pound on one exchange, while analysts believe the cost could reach $2.70.
Coffee crops were already in danger with arabica coffee supplies down by 60% since 2009.
Experts point out that the heavy rains have not just wiped out some coffee crops, it has also made it hard to deliver coffee beans once harvested.
According to one farmer:
“When it rains like this, we can’t cut.”
How the increased price of coffee will affect our nation’s supply of Starbucks coffee is not yet known, however with McDonald’s and other fast food chains offering cheap drinks there’s a good chance it won’t have the same price increasing effects coffee crop price increases have had in the past.