Will a strong El Nino cause coffee prices to rise?

The National Weather Service, in March issued an El Niño advisory. The advisory stated that the phenomenon is 90 % likely to last through the summer of 2015 and at least 80 percent likely to continue through the end of the year.

The price of coffee could increase by 107 percent, with the weather effects of a strong El Nino although others said the average increase typically ranged from 5 to 10 %.

During an El Niño event, waters in the Equatorial Pacific Ocean become warmer than what would be considered as normal as trade winds are lighter, changing what would be thought of as normal weather patterns around the world.

Heavy rains and flooding in the southern U.S. and parts of Latin America, along with droughts in Australia and Asia, would be likely. The recent heavy rain in drought stricken north Texas and Oklahoma would seem to be a fulfillment of this prediction.

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