World: Coffee crunch sends Arabica to record and risks costlier drinks

Published 2024년 12월 10일

Tridge summary

Coffee prices in New York have reached a record high due to concerns about a global supply crunch, with the arabica variety surging by 80% this year. This is caused by crop issues in key growing countries like Brazil and Vietnam, potentially leading to higher costs for roasters and cafes, which may pass the increased prices on to consumers. The severe drought in Brazil and dryness in Vietnam's coffee region are contributing to the expected decrease in coffee production, which is expected to fall short of demand by 8.5 million bags in the 2025-26 season. This situation is part of a broader trend where soft commodities like cocoa and orange juice are also experiencing price hikes due to various production challenges.

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

Original content

(Dec 10): Coffee hit a record high in New York, on mounting worries over a global supply crunch that have made it one of this year’s hottest commodities. Futures for the arabica variety that’s favoured in specialty brews have surged about 80% this year amid crop setbacks in key growers, threatening to further pinch consumers’ pockets. They rose as much as 4.9% on Tuesday, touching the highest in data going back to 1972 and eclipsing a peak set that decade when a disastrous so-called Black Frost decimated Brazilian trees. Fears have now grown about future supplies in top grower Brazil after a severe drought earlier this year. That’s in addition to worries about output in Vietnam — the largest producer of the cheaper robusta bean — after its key coffee belt suffered from dryness during the growing period and heavy rains arrived at the start of harvest. The rally risks further raising costs for roasters and cafes, which may have to pass them on to consumers. Facing a squeeze, sellers ...

Source: Theedgemarkets