Arabica coffee prices reach highest level in 47 years-Bloomberg
Kyiv • UNN
Arabica coffee futures hit 3 3.22 a pound, the highest level since 1972. The reason was a severe drought in Brazil and supply problems in other producing countries.
Stock prices for Arabica coffee rose to a maximum. The reason for the price increase is concerns about the lack of supplies caused by the drought in Brazil. This was reported by Bloomberg, writes UNN.
Details
The price of Arabica coffee continues to rise amid fears of a poor harvest in Brazil. Arabica futures rose more than 3% in New York on November 28 to до 3.22 per pound. This is the highest level since at least 1972. The record high price of coffee was recorded in 1977 and amounted to 3 3,375 per pound.
Brazil, the world's largest coffee producer, has experienced an unprecedented drought this year, raising concerns about the 2025/2026 harvest. Geopolitical factors, including disruptions to shipping in the Red Sea, possible U.S. tariffs, and future European Union deforestation decisions, are also driving up coffee prices.
The U.S. Department of Agriculture predicts that Brazil's coffee harvest in the 2024-2025 agricultural year will reach 66.4 million tons. standard 60-kilogram bags, while previously expected 69.9 million. bags. At the same time, Coffee stocks in Brazil are now estimated at 1.2 million bags at the end of the agricultural year, which is 26% lower than in the previous season.,
According to the Cemaden meteorological service, the current season in Brazil is the driest since 1981.
In addition, heavy rains in Costa Rica led to the declaration of a state of emergency in Ukraine and destroyed about 15% of the country's annual coffee crop, according to the ICAFE Research Institute.
At the same time, Vietnam is concerned about the supply of robusta coffee, also caused by drought during the growing season. This variety is used for the production of instant coffee. Since the beginning of this year, Arabica has risen in price by about 70% in the United States, robusta – by 85% in London. The price of robusta coffee in London is about 5 5,200 per ton.
recall
Arabica coffee futures rose to вересні 2.68 a pound in September, the highest level since 2011. The price increase is caused by a shortage of robusta, a drought in Brazil and logistics problems.
