In recent years, their challenges have increased. Climate change stretches the dry season, or makes rainfall erratic. Last year some farms went up to 45 days without rain. The farmers watched their maize and bean plants wilt and die. Then they reaped only more debt from their meager coffee harvest.
In normal circumstances when the price of a commodity drops below economic production levels supply dwindles. That eventually contributes to recovery.
Unfortunately for poor Central American farmers the largest producer, Brazil, has been benefitting from the weakness of the Real and a large overhang of supply is still pressuring the market.
The Real retested the BRL4 level this week but steadied today amid stronger economic figures. A sustained move above that level is going to be require to signal a return to Dollar dominance.
The iBovespa Index remains in a consistent medium-term uptrend and bounced impressively from the lower side of its most recent range today.