Adverse weather in the form of unusually dry conditions in Brazil have caused coffee prices to hit their highest point in eight months as possible crop damage in the world’s biggest coffee producer could change global supplies. Original estimates by analysts predicted another record coffee crop of 60 million bags from Brazil, however the extended dry weather has hit Brazil’s coffee belt at a particularly bad time, as the trees are growing the fruit called “cherries” that contain the coffee beans. As Brazil accounts for one third of the world’s coffee production, a drop in output could affect global supply and price.
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