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Coffee prices hit record high for first time in 27 years: what's the reason

 Coffee prices hit record high for first time in 27 years: what's the reason

Currently, the price of coffee is the highest in the last decade.

For the first time since 1997, futures for the most popular Arabica coffee variety have risen to a maximum.

Bloomberg writes about this, citing trading data.

Currently, March 2025 contracts have risen in price by 3.03% and reached $3.11 per pound of Arabica at their peak. At the same time, trading on the exchange for January deliveries of another popular brand of coffee, Robusta, also increased – now 1 kg of such coffee already costs $ 5,327.

Experts are convinced that the main reason for the price increase to a 27-year high was the news from Brazil, which is one of the world's main coffee exporters. Traders note that a shortage of coffee beans may arise due to crop failure and drought.

The global cost of living crisis has forced people around the world to switch to more affordable coffee made from Robusta beans, which is why demand for it has grown significantly, while supply remains in short supply. This has affected the growth of its cost.

Earlier, Fitch Solutions reported that Intercontinental Exchange warehouses are storing coffee stocks at the lowest level in a century.

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