It's raining in Brazil.
This may explain why coffee futures are down more than 5% today.
The Commodity Weather Group says the return of rains to the country’s growing areas will halt crop losses, Bloomberg reports. Coffee prices “should end the quarter below the current levels, unless weather risks continue,” added Kona Haque, an analyst at Macquarie in London, in an e-mailed report.
That will cool off performance for what has been the best performing commodity of the year — the soft has climbed nearly 60% YTD. Due to severe drought in the aforementioned areas, which are concentrated mostly along the country's coast, prices have been surging.
Here's the chart:
