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Coffee price sliding together with real
While football team of Brazil goes up in World Cup contest table, one of the main export commodities in the country suffers losses, Bloomberg reports.
While football team of Brazil goes up in World Cup contest table, one of the main export commodities in the country suffers losses, Bloomberg reports.
Coffee futures continue sliding to the lowest level in 29 months as Brazilian real loses its value compared to dollar.
Production volume in Brazil, which is the world’s largest producer and supplier at the same time, will reach record level this year. Price drop will benefit such companies as Starbucks Corp., world’s leading coffee chain, and Nestle SA that produces Nescafe and Nespresso.
On Monday price of Arabica coffee with September delivery dropped by 3% and closed at $1,1165 per pound at ICE Futures U.S. in New York. Before price fell to $1,1155, the lowest level since January 20 of 2016.
Real lost 1% after it declined by 15% in the second quarter.
Price of coffee dropped 19% since the end of 2016.