The rise in prices is gaining momentum due to concerns about severe weather conditions in Brazil. The country is finishing the 2024-2025 harvest, and production prospects are weakening.
Prices for high-quality Arabica beans have risen to their highest levels in 13 years due to supply shortages and weather conditions in Brazil. Futures are up 40% this year, threatening coffee prices around the world. Bloomberg wrote this on Monday, September 16.
A cup of coffee costs more as continued supply disruptions push prices up to their highest level in 13 years for premium Arabica beans.
Futures rose 3.3% to $2.6805 a pound in New York, their highest level since 2011. Prices have risen about 40% this year as a shortage of cheaper robusta beans fuels demand. for the Arabica variety favored by specialty chains.
The rise in prices is gaining momentum due to concerns about severe weather conditions in Brazil. The country is wrapping up its 2024-2025 harvest, with production prospects dimming after heat and drought ravaged plantations.
Now attention is turning to the potential for next season – the South American country is experiencing its worst drought in decades, threatening further declines in yields.
Rainfall in Arabica growing areas has been consistently below normal since the drought began in April.
“The challenge comes at a time when the coffee industry is suffering from port congestion in several countries, a global container shortage, disruptions in the Red Sea region, as well as disappointing harvests in Vietnam,” said Rabobank analyst Carlos Mera.
Robusta prices also rose throughout the week, jumping 3% on Monday.
It was previously reported that world cocoa prices have updated their historical record. Cocoa futures in New York hit a new historic record. The most active contract rose 5% to $11,578 per metric ton in early trading on Friday, April 19.
And at the end of April, the prices of cocoa beans fell by 26% in two days.
Source: korrespondent
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