Coffee Prices Double Following Brazil Drought


Published 04/24 2014 01:15PM

Updated 04/24 2014 01:17PM

The caffeine may not be the only jolt you get from your morning cup of coffee.

Prices have doubled since late last year because of a severe drought in Brazil, the origin of roughly a third of the world's coffee.

The dry spell has wreaked havoc on this year's harvest of Arabica Beans, which are used for the vast majority of global coffee production.

Growers in Brazil have been compensated for the drought by being able to sell their product at a higher price.

As a result, the Wall Street Journal reports arabica prices have soared to a 26-month high in the futures market.

If you get coffee from the big chains, including Starbucks, you may not see a price increase.

The company buys its beans at locked in prices way in advance.

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