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Is Colombian Coffee Entering a Dark Age?

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Hey I don’t know about you but when I wake up in the morning a little tired maybe thinking that I can’t get out of bed because I mean man it’s so nice and warm in here and outside looks so cold and it’s snowing and hey did I ever tell you about that time that I got locked out of my apartment when there actually was a blizzard well if not remind me to tell you the story sometime but wait where was I oh yeah sometimes it’s hard to get out of bed in the morning and when it is I really just look forward to the one thing that actually will get me out of bed in the morning and that’s a little substance that I have to thank a little country called Colombia for man I love Colombia those guys are really great great great I can’t feel my face!

Of course, I’m talking about coffee.

Unfortunately, Colombian coffee may be entering a dark age. Literally. Bloomberg reports:

Colombia’s largest coffee-growing province may post lower production this year unless there’s enough sunshine in the next few weeks to allow plants to flower and later bear fruit, according to a grower’s leader.

Output in Antioquia will probably equal or fall below last year’s 1.43 million bags, Luis Fernando Botero, the regional executive director at Colombia’s National Federation of Coffee Growers, said in an interview in Medellin. Production for the first-half will fall after wet weather, he said.

In fact, Colombia’s coffee industry has been suffering for a while. The BBC reports that in 2009 drought brought production to a 33-year low of 7.8 million bags. More recently, however, heavy rains have been problematic, disturbing coffee’s “flowering cycle” and introducing devastating insects and fungi to plantations.

But there are, if you’ll allow me, a few rays of sunshine peaking through these dark clouds. Colombia’s coffee growing region in the Andes has had three-weeks of good weather, and meteorologists are predicting that it will last through January 23rd.

Arabica-coffee futures for March delivery shot up 8.75 cents to $2.4055 a pound on ICE Futures U.S. in New York this morning, according to Bloomberg. Moreover, coffee futures shot up 67% last year in New York over concerns of reduced supply from Colombia.

How this might impact coffee drinkers here in the US remains to be seen. It’s just a shame that Colombia doesn’t produce any other stimulants that offer a quick, euphoric lift to help start your day.
POSITION:  No positions in stocks mentioned.
TAGS:  COFFEE, COLOMBIA, COFFEE FUTURES    SOURCE:   Bloomberg
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