The hot weather in Southeast Asia also increases the value of natural rubber.
Global coffee prices rose sharply in the second quarter due to extreme heat in key growing regions in Asia. This was reported by Nikkei Asia.
Futures quotes for the robusta variety in London at the end of June rose by 18.1% compared to the end of March. On June 6, the contract price reached a record high of $4,394 per ton. Arabica futures rose in price by 20.6% in three months.
The main reason for the price increase is the heat in Southeast Asia. Since April, the average temperature in Vietnam, Thailand and the Philippines has been above normal, reaching 48 degrees Celsius.
In Vietnam, farmers are facing a drought that could affect the autumn harvest. Vietnam produces about 40% of the world’s robusta beans used to make instant coffee.
The USDA two weeks ago forecast that agricultural coffee production will increase by 7.1 million bags (60 kg) to 176.2 million bags in 2024/25. This is mainly due to improved yields in Brazil and Indonesia. Global coffee consumption is expected to increase by 3.1 million bags to 170.6 million bags.
Warm weather in Southeast Asia also affected the price of natural rubber, which makes up a large portion of Thailand and Indonesia’s exports. Rubber futures quotes on the Osaka Exchange on June 10 reached the highest since mid-March – 360.9 yen ($2.23) per kilogram.
As you know, by the end of 2023, inflation in Ukraine has slowed down to 5.1%. This is the lowest level since 2020, when consumer price growth was 5%.
We remind you that at the end of April, the National Bank improved the inflation forecast for 2024, but worsened it for the following year.
Source: korrespondent
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