Coffee prices had their best year in a decade, climbing more than 76 percent and making the bean the top-performing commodity of 2021. Can coffee brew up more gains in 2022? Like other assets over the last year, the supply chain squeeze and fierce simultaneous global demand have played notable roles in coffee’s boom. But other aspects have supported prices, too. In July, Arabica coffee prices surged roughly 30 percent after unusually cold weather impacted coffee crops in Brazil, the world’s largest producer. The frigid temperatures damaged significant portions of the nation’s main growing areas. Since coffee trees are sensitive to frost, they could be permanently destroyed, potentially prompting farmers to replant trees. It can take three years for a tree to become productive, experts say. Last month, the weather changed as drought conditions had significantly affected many of the South American nation’s crops, including coffee, corn, and soybeans. This …
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