The USDA predicts that global coffee supplies will decrease to their lowest levels within 25 years in the 2024-2025 crop year.
Arabica coffee prices have risen to the record level amidst US President Donald Trump’s threats will impose tariffs on importing goods from Colombia. The Marketwatch reported this Monday, January 27th.
Thus, Arabica futures rose to price by 0.75% and are now trading in New York at $ 3.5015 per pound. Earlier in the auction, the price reached $ 3.5535 per pound, which is a record since the data recording in 1972 began.
It should be noted that Trump has ordered the administration to immediately impose a 25% tariff and other steps against Colombia for its authorities’ refusal to accept two planes with illegal migrants from the United States. Later, the White House said the tariffs were not yet effective because the Colombian government agreed to meet all of Trump’s conditions, including receiving flights with a deported migrants .
Colombia is the third largest coffee producer in the world and Arabica’s second largest producer.
Over the past 12 months, Arabica coffee prices have increased by 85% due to concerns about poor harvesting in Brazil and Vietnam. Meanwhile, the US Department of Agriculture estimates that global coffee supplies will drop to their lowest levels in 25 years in the 2024-2025 crop year.
It was previously reported that cocoa prices in the world updated their historical records. Cocoa Futures in New York hit a new all-time high. The most active contract increased by 5% to $ 11,578 per metric tons in early trade on Friday, April 19.
In December 2024, Arabica Coffee Futures at the New York Stock Exchange has reached $ 3.434 per pound, the highest level since 1972.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.