World: Arabica bean prices rise by 70%

Published Dec 25, 2024

Tridge summary

Coffee traders are struggling due to the need to hedge supplies from countries such as Brazil, Vietnam, and Guatemala to buyers in Europe and the US, as prices need to be reduced. Russian coffee prices are expected to grow by an average of 20-30 percent next year due to drought in Brazil and heavy rains in Vietnam, and experts recommend Russians to look for discount promotions in stores.

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Original content

"This is a very turbulent time, and traders are having a very, very difficult time," the agency quotes Keith Gulliver, director of British coffee trading companies Origin Commodities Ltd. and Dragon Commodities Ltd., as saying. To reduce prices, Bloomberg writes, traders need to hedge coffee supplies when transporting it from producers in countries such as Brazil, Vietnam or Guatemala to buyers mainly in Europe and the United States. That is, open deals in one market to offset the impact of price risks in another. As for coffee prices in Russia, they will grow by an average of 20-30 percent next year, experts say. According to Igor Balynin, PhD in Economics and associate professor of the Department of Public Finance at the Financial University under the Government of the Russian Federation, whose words are quoted by Gazeta.Ru, the ...

Source: RG