The global commodities market—from coffee to corn to crude—is heating up again. This could spell bad news for public policymakers and consumers in the inflation fight.
Coffee has surged about 13 percent over the last week, rising to a near three-month high of $2.40 per pound on the U.S. ICE Futures Exchange. Year to date, the agricultural commodity is up 6 percent.
Investors are concerned that drought conditions in Brazil could reduce coffee yields and impact international supplies. In Minas Gerais, which produces nearly a third of the nation’s arabica crop, there has been no rain over the last week. Weather experts warn that below-average rainfall could linger for the rest of 2022….