Unseasonably warm winter weather in Brazil is bringing coffee prices down. All this could change between now and mid-August, if winter brings frosts to the coffee growing areas of Sno Paulo and Parana, but 1980 so far has seen little of the cold winter winds that have hit Brazil during May and June in recent years.
Since Brazil is the world's largest coffee producer, any decline in Brazilian production due to cold winter weather tends to force coffee prices up; but likewise, a mild winter brings prices down.
Since 1975, Brazil has been experiencing a series of cold winters and this, coupled with production lags in Central America and Africa, have sent prices soaring.
This year, however, with continuing sluggish demand for coffee due to a loose consumer boycott over high prices, even a mild frost later in the winter months would not send prices soaring. Production in Africa is running above normal and the higher-priced Central American and Colombian coffee yields are good.