Coffee prices in the world rose by 18-20% in the second quarter due to the heat in Asia

Published 2024년 7월 4일

Tridge summary

Global coffee prices surged in the second quarter due to extreme heat in key growing regions in Asia, with robusta futures in London rising by 18.1% and arabica futures by 20.6%. The heatwave in Southeast Asia, particularly in Vietnam, Thailand, and the Philippines, has led to drought conditions affecting coffee and natural rubber production. Vietnam, a major robusta producer, faces a potential second consecutive poor harvest. Despite this, the US Department of Agriculture forecasts a global coffee production increase driven by better harvests in Brazil and Indonesia. Natural rubber prices also spiked due to heat damage to rubber trees in Thailand and Indonesia.

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Original content

Moscow. 4th of July. INTERFAX.RU - Global coffee prices rose significantly in the second quarter due to extreme heat in key growing regions in Asia, writes Nikkei Asia. Futures quotes for the robusta variety in London by the end of June increased by 18.1% compared to the end of March. On June 6, the contract price reached a record high of $4,394 per ton. Arabica futures rose in price by 20.6% over three months. The main reason for the price jump was the heat in Southeast Asia. Since April, average temperatures in Vietnam, Thailand and the Philippines have been above normal, reaching 48 degrees Celsius. In Vietnam, farmers are facing drought that could affect the fall harvest. Vietnam produces about 40% of the world's robusta beans, which are used to make instant coffee. "Last year's robusta harvest was poor, so prices are rising on fears that the harvest will be poor for the second year in a row, prolonging the tight balance between supply and demand," said Masanobu Takano of ...

Source: Interfax