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Over the last few months, we have seen an explosion in sugar prices during the India (the drought will be easing shortly) and Thailand droughts, cocoa prices reaching multi-year highs on the worst wet weather and disease situation in West Africa in three generations, and global crop problems for cotton. Now, it may be Brazil coffee's turn for crop issues.
Following our mostly bearish attitude toward coffee for close to a year, and pretty much a contrarian view, this image below of my proprietary software illustrates how El Nino combined with what we call a warm TNA (Tropical Atlantic) and a positive India Dipole responsible for Australia's new drought, will also cause hot, dry weather for Brazil coffee the next few weeks. This will become more critical in October.
As you can see, dry weather (like the 2006 El Nino) will continue to aggravate Australian wheat, with dry N. Brazil weather putting the breaks on the recent major decline in coffee prices (Jim Roemer--www.bestweatherinc.com WeatherWealth newsletter)
Following our mostly bearish attitude toward coffee for close to a year, and pretty much a contrarian view, this image below of my proprietary software illustrates how El Nino combined with what we call a warm TNA (Tropical Atlantic) and a positive India Dipole responsible for Australia's new drought, will also cause hot, dry weather for Brazil coffee the next few weeks. This will become more critical in October.
As you can see, dry weather (like the 2006 El Nino) will continue to aggravate Australian wheat, with dry N. Brazil weather putting the breaks on the recent major decline in coffee prices (Jim Roemer--www.bestweatherinc.com WeatherWealth newsletter)
