Bad news for coffee lovers: prices are jumping because of this
LAREDO, Tex. (KGNS) - Some bad news for coffee lovers --a jump in coffee bean prices could soon filter through to your morning caffeine fix.
Prices have surged as crops in Brazil, the world’s top producer, have been damaged by the worst drought in almost a century.
Coffee futures hit a four-and-a-half year high in New York trading last month.
They’ve slipped since then to about $1.50 a pound, but that’s still a significant increase from this time last year.
Roasters and coffee buyers typically have contracts with suppliers, insulating them from price volatility for about three to nine months.
But when those contracts end, many roasters will likely sign new deals at sharply higher prices, which may then be passed on to customers.
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