Coffee climbs as oil rally, Brazil weather add to supply threat

Coffee climbed to a one-week high in New York on worries that surging energy costs and cool weather in Brazil will further threaten supplies.

Arabica futures rose as much as 1.3%, adding to Tuesday’s jump of almost 4%. There are concerns the boom in oil prices caused by the fallout of Russia’s invasion of Ukraine will add to farmers’ costs. Higher fertilizer prices and tight supplies of the nutrients risk curbing yields in top grower Brazil.

Smaller yields and supply line snarls leave little room for unfavorable crop weather. Temperatures in Brazil’s coffee regions may see cooler-than-normal conditions from May through July,