Coffee News: Hurricane Katrina May Affect Coffee Prices
"While Hurricane Katrina may have devestated the Gulf Coast, the affects of her wrath will be felt across the entire country. The impact may be significant for some, probably more-so for those on the eastern half of the country, but for others it will be less noticeable. One of those impacts may be the price of a cup of coffee, not to mention the milk or cream you may add to it.
New Orleans is home to around 1/6 of the country's stored coffee. There were roughly 733,000 bags of coffee, weighing approximately 132 to 150 pounds each, in storage in New Orleans on Monday, according to The Chicago Board of Trade. Industry officials seemed to be right in their worry over flooding as nearly the entire city is under water and evacuation orders are now in place.
The New York Board of Trade announced that a force majeure situation exists. That means that a situation caused by a force of nature voids a contract. Because of that force majeure declaration any delivery notices traded on the exchange before the announcement on Tuesday, are suspended until further notice. All coffee from the exchange will head to Houston, Miami or New York for now."
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Posted by Jennifer at September 1, 2005 7:30 PM