70-80% of Brazil's current Arabica crop has already been sold, and new deals are slow.
World prices for Arabica coffee have reached a record high above $3.60 a pound, as Brazil, the world's largest producer, has few beans left to sell.
This is reported by Reuters.
Dealers say 70-80% of Brazil's current Arabica crop has already been sold, and new deals are slow. Brazil produces nearly half the world's Arabica coffee, a high-quality variety typically used in roasted and ground blends.
The country's weather has been better recently after a severe drought last year. But the next crop is expected to be 4.4 percent smaller than last year, according to Brazil's food supply agency Conab.
“Global coffee supplies remain tight, with Vietnam making slow progress in selling its robusta crop. Arabicas harvested in Central America and Colombia take longer to reach market, and Brazilian farmers have shown little interest in selling,” the paper wrote.
Robusta coffee, typically a cheaper variety used primarily for instant coffee, rose 0.9 percent to $5,609. Coffee exports from India, the world's fifth-largest producer of robusta, are expected to fall by more than 10% in 2025 due to lower production and lower stocks from last season's harvest.
Recall that in November, for the first time since 1997, futures for the most popular Arabica coffee variety rose to a maximum. Contracts at their peak reached $3.11 per pound of Arabica.
