Global: Coffee gets even pricier as Arabica jumps to highest since 1977

Published 2024년 11월 27일

Tridge summary

Coffee futures have surged to their highest level in over 40 years in New York due to global supply concerns, with Arabica beans reaching their highest price since 1977 and increasing almost 70% this year. This is largely due to a severe drought in Brazil and dryness in Vietnam, the world's first and second largest coffee growers respectively, as well as potential trade tariffs under a Trump administration. These supply issues are causing sellers to raise prices and cut discounts, leading to increased costs for consumers and businesses in the coffee industry. The rally is also being driven by uncertainty over the EU's deforestation rules and speculative betting on higher prices.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Coffee futures extended their rampant rally to the highest in more than four decades in New York on global supply worries, threatening to further raise costs for consumers. Arabica beans — the variety favored for specialty brews — climbed as much as 3.9%, hitting the highest since 1977. They’ve jumped almost 70% this year. A severe drought earlier this year in Brazil has fueled worries about the country’s output. That comes on top of concerns about another bean variety produced in Vietnam, after a key coffee belt was hit by dryness during the growing period and heavy rains arrived at the start of harvest. The countries are the two biggest global coffee growers, with Brazil exporting mostly the premium arabica bean and Vietnam leading the market for the cheaper robusta. The move is set to add to the pain facing cafes and roasters, ultimately boosting costs to consumers. Along the supply chain, sellers have raised prices and scrapped discounts to protect their margins. Nestle SA, ...

Source: UkrAgroConsult