One week ago, it began to appear that the price of Robusta coffee (produced in Vietnam, northern Brazil and Indonesia) would begin to rise due to the unusual humidity of the Vietnam harvest. Some events such as La Niña combined with the warm western Pacific have led to typhoons and other weather complications in Vietnam since October. But before these events, there was a drought in Vietnam.
The harvest in Vietnam was completed from about 20 to 25% last week and the weather forecast looks for more rains, which may further delay the harvest. Last week, we also saw reports that Brazilian coffee crops were hurt by dry October and November weather in 35% of southern growing areas. While the rains returned to Brazil, which occasionally caused prices to sell off, America experienced hurricanes that hit Central America in particular. These events will reduce global production by 2021.
About 30% of the growing area in Brazil suffered from dry weather. Rainfall is forecast for Brazil further in December. Has there been irreversible global crop damage?
The Weather Wealth is following the delay in the Vietnamese coffee harvest very closely, and any change in the forecast will be important in the coming weeks.