Cocoa production not so sweet
Cocoa prices rallied to their highest levels since April, supported by reports that exports from the Ivory Coast will fall by as much as 40%. Heavy rainfall in October might have damaged pods there, contributing to reduced production later this year. Fully 80% of the world’s cocoa production occurs on Africa’s west coast, so weather conditions there are watched closely by both producers and consumers alike. Speculators might want to head to the candy shop early this year since pleasing their favorite Valentine might become more expensive.
Coffee catapults to 12-year high
Your cup of joe is bound to increase your breakfast bill soon as Brazilian coffee trees are in poor condition, causing that crop size to fall in the coming year. Fears have risen that tropical storm Sara could cause catastrophic flooding near coffee producing areas. At the same time. traders have become worried about typhoons in Vietnam delaying harvesting of that country’s crop.
Drier, drier … Coasts on fire
Major wildfires have swept across both bone dry coasts this week leaving at least 35,000 acres burned in California while 5,000 acres are scorched on the New Jersey and New York state line. An 18-year-old firefighter died battling the New Jersey blaze, and homes and property were destroyed in these coastal fires. Philadelphia has experienced 42 days without rain, and the entire U.S. is largely dry or experiencing some drought level.
While most controlled or less intense fires actually benefit the environment, these severe wildfires cause agricultural and environmental problems. Heavy metals and other contaminating sediments pollute nearby water supplies, harming animals and plants. Root systems can be damaged with plant wilting and crop dehydration occurring while run off can cause soil erosion. Issues with light also affect the photosynthesis process. Crops such as corn can rot completely while potatoes can be severely stunted.
Some forecasters call for wetter weather ahead, but heavy rain risks in southern and central U.S. could cause flooding. The increase in wildfires and other damage caused by climate change raises the prospect of alarming human consequences going forward.
CME midday prices: December metals: Gold, $2,577 per troy ounce; silver, $30.62 per troy ounce; copper, $4.10 per pound. December crude oil: $68.25 per barrel. Price per bushel: January soybeans, $10.03; December corn, $4.21, December wheat, $5.40. December livestock per 100 pounds: Cattle, $182.80; hogs $79.20. December cocoa $8,600 per ton. December coffee was at $2.81 per pound.
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