Coffee hit a record price amid growing concerns about a global supply shortage, making it one of the year’s top commodities.
Arabica coffee futures hit $3.434 a pound on the New York Exchange, the highest since 1972. Bloomberg reported on Tuesday, December 10.
Futures for Arabica beans, popular for use in specialty drinks, are up about 80% this year as crop problems in major producing countries cause additional costs for consumers . Prices jumped 4.9% on Tuesday, hitting their highest level since 1972.
The main reason for the price increase is the unfavorable weather conditions in the producing countries. In particular, in Brazil, the largest supplier of Arabica, the drought continues, while in Vietnam, the leader in Robusta production, the dry period has given way to heavy rains, which complicates the harvest.
Due to the rising cost of coffee, companies and cafes that specialize in roasting coffee beans are forced to raise prices to maintain their profitability.
As crop forecasts in Brazil continue to deteriorate. So, next season the country will produce 34.4 million bags of Arabica – 11 million less than expected in September.
Analysts predict that this situation could lead to a shortage of 8.5 million bags for the 2025-2026 season, which would be the fifth year of market shortages.
It was previously reported that world cocoa prices have updated their historical record. Cocoa futures in New York hit a new all-time high. 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 dropped by 26% in two days.
Source: korrespondent
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