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How a Lewd Presidential Tweet Could Make Your Morning Coffee Cheaper

Bloomberg logoBloomberg 3/9/2019 Fabiana Batista

The new diet trend of drinking your coffee with butter.© Richard Lautens/Toronto Star/Getty Images The new diet trend of drinking your coffee with butter. Lewd tweets and coffee prices: Who knew how much impact one could have on the other?

Brazil’s President Jair Bolsonaro is in hot water after he shared a lewd video this week that drew criticism from opponents and supporters alike, including the military. The tweet reverberated across markets, helping to send the nation’s currency lower.

Brazil is the world’s biggest coffee producer and exporter. When the real falls, it encourages the nation’s shippers to send more beans abroad, since they fetch dollars in return.

Coffee prices were already in the dumps, thanks to an overabundance of supply. But recent losses for the real have only added to the malaise. May arabica futures dropped 1.7 percent this week in New York to settle at 98.5 cents a pound.

Coffee prices move with Brazil's real© Bloomberg Coffee prices move with Brazil's real

To contact the reporter on this story: Fabiana Batista in Sao Paulo at fbatista6@bloomberg.net

To contact the editors responsible for this story: James Attwood at jattwood3@bloomberg.net, Millie Munshi, Joe Ryan

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.

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