Brazil suffers century-old drought Brazilian coffee bean prices rise and Indian tea prices soar

Coffee and tea prices have gone up.

Yesterday,#coffee and tea prices #news on the micro blog hot search list.

According to relevant news, the transaction prices of coffee and tea in the recent international market have increased significantly.

According to CCTV Financial News, data released by the UN Food and Agriculture Organization on the 3rd showed that in May this year, the FAO Food Price Index averaged 127.1 points, up 4.8% month-on-month and up 40% year-on-year.

The price index posted its biggest month-on-month gain since October 2010, marking the 12th consecutive month of gains for the food price index, which climbed to its highest level in a decade.

According to introduction, due to demand changes, epidemic logistics restrictions and weather factors and other heavy damage conditions, some food prices have risen.

For rising commodity prices, the following are coffee and tea categories.

For Brazil, coffee prices have risen due to dry weather.

Brazil has suffered the worst drought in nearly a century. The supply of corn and sugar in the international market has also been affected. Coffee has also been affected obviously. The main contract coffee price counted by the Intercontinental Exchange of the United States has risen by more than 20% since the beginning of this year. The recent rise is particularly significant. The current level is already at the highest level in nearly five years.

CFC Agricultural Research released a message saying that Brazil's rainfall in May was lower than normal, and dry weather caused Brazil's sugar and coffee production to be affected.

Brazilian media reported that the Agriculture Ministry issued its first "emergency drought alert" for June to September, saying that the country could experience scarce rainfall during this period, and insufficient rainfall led to a sharp rise in coffee futures.

India, the world's second-largest tea producer, has pushed up the price of another big drink, tea, because of the epidemic and local drought.

According to Indian media reports, in the first four months of this year, Indian tea auction prices rose 47% year-on-year.

According to the tea association of india, the average rainfall in tea-growing areas of assam from january to may this year was 30% less than in previous years. Compared with the output of the same period in 2019, the tea production in January-May this year was reduced by at least 60 million kilograms. In addition, due to the impact of the new crown pneumonia epidemic, blockade measures began to be implemented in all parts of India since March 25 last year. Even if the tea was produced, it was difficult to transport it. Under the double blow, the price of Indian tea rose.

In addition, Coca-Cola also appeared before the news of price increases.

On April 19, US media reported that Coca-Cola CEO James Quincy said that the company's drinks would rise in price to cope with rising commodity prices.

We have previously reported that the direct reason for "Coca-Cola will rise in price" is because of the rise in commodity prices. For example, the metal aluminum required for Coca-Cola cans has risen by 23.2%, resulting in an increase in the cost of Coca-Cola cans by 5 cents. If high fructose syrup, PET materials and other packaging materials are added, it means that this round of commodity prices in Coca-Cola production costs is higher.

* Part of the article news and picture source: CCTV Finance CFC Agricultural Products Research