Coffee futures prices jumped more than 6% on the ICE exchange on August 12, driven by investor concerns over potential disruptions in production due to recent frost reports in key Brazilian coffee areas.
Farmers from the Cerrado Mineiro region, the second-largest coffee-growing area in Minas Gerais, Brazil, have shared social media posts showing evidence of light frosts. While these frosts have been observed in the Cerrado Mineiro region, there have been no similar reports from South Minas Gerais, the primary coffee-producing region in the state.
Local coffee cooperatives and farmers have confirmed that areas such as Patrocinio and Tapira within the Cerrado Mineiro have experienced frost. Expocacer, a cooperative based in the region, acknowledged the occurrence of frosts but noted that the full impact is still under assessment. “Yes, we had some frosts in specific places,” stated Expocacer. “The extent of the frost damage is not yet clear, and we are conducting evaluations among our member farmers.”