Brazil

Investors react to Brazil's plummeting coffee reserves

In this image, coffee beans are turned over in a larger container
Brazilian coffee beans in Rio de Janeiro. Photo: Christophe Simon/AFP via Getty Images

Brazil, the world's largest coffee producer, could reach its steepest drop in coffee reserves since U.S. government records began in 1962, according to new Department of Agriculture projections reported by Bloomberg.

The big picture: Hedge funds and other money managers are taking their net-bullish holdings on arabica coffee to their highest levels since 2016, Commodity Futures Trading Commission data showed Friday. A "bigger biennial crop in 2020-21 in Brazil may bring relief to supplies," Bloomberg notes — but 60% of wild coffee species worldwide were found to be in danger of extinction earlier this year.

Go deeper: The scientists saving coffee

Thousands of Brazilians seeking asylum in the U.S.

Migrants mostly from Honduras, Guatemala and Brazil prepare cots to sleep on
Migrants mostly from Honduras, Guatemala and Brazil prepare cots to sleep on. Photo: Joe Raedle/Getty Images

Nearly 17,000 Brazilian migrants have passed through El Paso, Texas in the past year, with many claiming fear of persecution or extreme economic hardship, AP reports.

Why it matters: Nationwide, 18,00 Brazilians were apprehended in the fiscal year ending in October — up 600% from 2016, per AP. The increase in Brazilian migrants coming to the U.S. highlights the Trump administration's efforts to block legal immigration for people who claim they are being persecuted, AP writes.