The price of coffee reached its highest level in recent years in February. Economic recovery will halt the strong rise in coffee prices
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Falling coffee production in Vietnam and Brazil has led to a rise in coffee prices to their highest level in recent years.
Coffee prices rose 35 per cent at the end of the year due to lower-than-expected harvests caused by rains during the harvest of Vietnamese coffee 2020amp 21 and drought during the flowering season of Brazilian coffee 2020ramp 21. At the end of February 2021, the price of coffee exceeded the highest level in 2020 and even reached the highest level since 2017.

This is not fully reflected in the official reports of the United States Department of Agriculture and the International Coffee Association (ICO). Private traders and analysts expect the global coffee surplus to decline to some extent, in line with recent official forecasts by the USDA and the International Coffee Association.
Will there be a frost in Brazil in 2021 and the price of coffee will soar further?
A number of meteorological agencies have come forward to refute the rumor: this is not scientific at all!
Because recent weather problems in several coffee-producing countries are related to La Nina, some commodity weather analysts predict frost in Brazil between July and August this year, which will lead to a further surge in coffee prices.

However, according to a number of meteorological agencies that track La Nina, La Nina will decline sharply by more than 50% in the coming months, which will reduce the negative weather impact on all crops around the world. With commodity weather analysts forecasting frost events in Brazil months in advance, the weather said these forecasts were not scientific at all.
The economic recovery has a chance to pause the strong rise in coffee prices.
The current price of coffee market directly reflects the global supply and demand of coffee. With the relaxation of COVID-19 restrictions, the demand for coffee is bound to rise, but this is not enough to absorb the coffee oversupply.

At present, the coffee market is volatile, and if prices continue to rise without a correction, this will confirm that there are major problems in global coffee production. The current easing of COVID-19 has led to a recovery in the economy, and this trend will continue only if coffee production cannot keep up with demand. In the current situation, the strong rise in coffee prices will be suspended.
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