COMMODITY PRICE INDEX

News of frost in Brazil sent coffee prices soaring on July 18th as traders and speculators scrambled to buy. In New York, the price of high-quality Brazilian-grown arabica beans hit a six-month high, after rising by 30% in two days. London prices for robusta beans, used in instant coffee, rose by 13% in one day, near to five-month highs. Coffee prices had slumped to seven-year lows earlier this month. The drop prompted producers, including Brazil, which accounts for a quarter of global supply, to agree to withhold exports. Brazil's current crop, hit by drought, was expected to be 28m bags (of 60 kg each). A ground frost usually affects only the following year's crop—until now forecast at over 40m bags—unless there is wind-chill damage as well. Brazil's most recent frost, in 1994, sent prices rocketing up by 80% in a month.