A sharp jump in coffee prices on world markets has already led to an increase in the cost of Arabica coffee.
Coffee could reach its highest price since 1980 due to crop failure in key producing regions and a decrease in offers at auctions.
This is reported by Bloomberg.
In particular, futures for Arabica varieties, which are preferred by cafe chains, rose by 1.6%. The premium variety has also risen in price, trading just under $4 a pound after doubling in the past year.
“A shortage in Brazil, the world's largest Arabica producer, continues to worry traders after record shipments early in the season meant less availability now. Brazilian exporter Comexim Ltda. said Monday that it expects production of both Arabica and cheaper Robusta in the country to decline in the 2025/26 crop year,” the newspaper writes.
Economists say that second-hand dealers may also be driving up coffee prices. Their growth may also be affected by the lack of certified stocks from sellers.
“Stocks in warehouses controlled by the exchange are now the lowest since November. But the recent increase in the amount of coffee awaiting sorting may somewhat reduce the supply deficit on the exchange,” the publication's journalists note.
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.
