The highlands here in Boquete has some of the best coffee in the world and we are kind of like the Napa Valley of the coffee world.  More and better varieties are being grown here because the cost of production has risen to about the current price of regular coffee.  Thus we must grow the best if this industry is to survive.

Bad news for Brazil has been good news for the rest of the coffee growers this week.  But that too could change quickly.

The dry weather in Brazil drove up the price of arabica coffee by 23% in a week, but the upward trend is not expected to last.

On Tuesday coffee prices reached their highest levels in several months caused by dry weather in Brazil, the largest producer and exporter in the world, which could affect the next crop.

“The price of Arabica increased by 23% in a week and 36% since last November, when it reached its lowest price in seven years (100.95 cents per pound).”

“But at the moment there is no guarantee that the rising price of coffee will continue. Because if it rains in Brazil in the coming weeks (…) prices would fall as sharply as they have increased,” said commodities specialist at Capital Economics, Thomas Pugh.