Central American Coffee Dries Up

Nothing starts the morning like a delicious cup of Honduran Marcala Princesa.

That pleasure may soon cost a few cents more, however, as a persistent dry spell in Central America has meant a drop in production this year.

To make matters worse, production is also down in Indonesia, the world's third largest coffee producing nation.

According to Bloomberg, "coffee has gained 17 percent in 12 months on concern that supplies of the bean will lag rising demand. Futures for May delivery declined 2.3 percent to $1.298 a pound on ICE Futures U.S. in New York today."

No word from commodities traders on whether they expect demand to shift towards 5-hour energy or Red Bull Cola.

Online Sources: Bloomberg, Mayorga Coffee
Image Source: Cafe Marcala