What is the reason for the increase in coffee prices in the world market?

Published 2024년 12월 14일

Tridge summary

In 2024, the global markets for cocoa and coffee have seen significant price fluctuations, driven by the strongest El Niño in a decade and weather-related supply disruptions. These challenges, including overselling in Ivory Coast and Ghana's cocoa market and the fourth consecutive deficit season in global coffee markets, are expected to persist until 2025. Despite potential increases in West African cocoa production and a return to a surplus in the global market, prices are expected to remain high due to unpredictable weather and high demand. Similarly, coffee prices are expected to remain volatile and high, influenced by the severity of droughts in Brazil and uncertainties in the 2025-2026 harvest.

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

Original content

According to ISNA, cocoa and coffee prices have experienced sharp fluctuations in 2024, and the problems in these markets, combined with weather uncertainty, mean that prices are likely to remain volatile until 2025. Agricultural commodities have been severely affected by this year’s El Niño, the strongest in nearly a decade, which had a severe negative impact on global cocoa and coffee production. Cocoa and coffee agricultural commodity prices are expected to decline from the record highs recorded in 2024, but will remain high amid supply disruptions. Experts said that Ivory Coast and Ghana have both oversold their cocoa production. The global cocoa market recorded a deficit of 478 tonnes in 2023-2024, the largest deficit in more than 60 years and the third consecutive year of deficit. Forecasts currently show that West African production, which accounts for more than 70% of global output, will rise. However, there are risks to this due to recent adverse weather. Stronger ...

Source: Isna