World’s coffee trade slows down: Prices rise 70%

The global coffee trade is experiencing important difficulties due to note prices, forcing entrepreneurs to reduce purchases in small amounts. Sellers could not convince retail networks that received new, higher prices, leading to serious disruption of delivery. Reuters reported this Friday, March 7.

Over the past few months, Arabica in the ice exchange has grown 70%, which has led to shock in the industry. Elcafe CA director told Ecuador Renan Chueri that for the first time for many years their company did not sell full planned quantities of production in March.

“Usually we will sell all the products to this day, but only 30%are sold,” he said.

The main reason for the price jump is to reduce labor in the main regions of coffee cultivation, especially in Brazil. It forces the market to operate according to the “from hand to hand” procedure — when there are no long -term contracts, only with immediate payment and self -equipment.

Coffee warehouses in the United States divided, which led to the premature end of renting agreements in the area. Some American retailers appear to be before the lack of coffee on the shelves, as negotiations at new prices are delayed.

Despite current difficulties, analysts expect a possible reduction in prices by 30% by the end of the year due to prospects of a great harvest in Brazil and the expansion of sown areas in countries such as India, Uganda and Ethiopia. However, before stabilizing the market, the part of the coffee business may not withstand the financial burden.

Remember that the cost of premium grain has doubled in one year and approaches $ 4 per pounds, which is the longest growth series since 1980.

Earlier it was reported that the world’s prices for Cocoa were updating a historical record. Cocoa futures in New York have achieved a new history record. The most active contract grew by 5%, reaching $ 1,1578 per metric tons at the beginning of the trade on Friday, April 19.

In December 2024, the coffee futures of the Arabica varieties in the New York Exchange reached $ 3.434 per pounds, highest in 1972.