Brazilian poll results could boost world coffee prices
Arabica coffee, the higher quality bean produced in Central America, has jumped almost a third since it reached a 12-year low in September to a four-month high of $1.23 a pound.
The change began in Brazilian markets earlier this month that have been cheered by a better than expected result for Jair Bolsonaro, the far-right former army captain, in the first round of the country’s presidential elections.
Bolsonaro, who is regarded as business-friendly, is seen to be in a strong position to win the second poll on Sunday. As a result, the Brazilian real has rallied about 13 per cent since its latest low in August. And a strong real always boosts coffee prices, say market analysts.