World: Heat in Asia triggered global rise in coffee prices

Published Jul 4, 2024

Tridge summary

Record high prices for coffee futures, with Arabica futures reaching $4,394 per ton on June 6, marking a 20.6% increase over three months. The price hike is primarily due to heat in Southeast Asia, particularly in Vietnam, Thailand, and the Philippines, where temperatures have soared above average, reaching 48 degrees Celsius. This heat and drought conditions are causing concerns for the autumn harvest, as these countries account for approximately 40% of the global production of robusta beans, a key ingredient in instant coffee. The poor harvest from last year and fears of a similar outcome this year are exacerbating the price surge and creating a tight balance between supply and demand.

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Original content

Earlier, on June 6, their price reached a record high of $4,394 per ton. Arabica futures quotes increased by 20.6% over three months. The publication named the heat in Southeast Asia as the main reason for this price jump. It is noted that since April, average air temperatures in Vietnam, Thailand and the Philippines have been above normal and reached 48 degrees Celsius. At the same time, Vietnamese farmers are faced not only with heat, but also with drought, which could affect the autumn harvest. But it is they, recalls Nikkei Asia, that produce about 40% of the world's volume of robusta beans, which is used to make instant coffee. Masanobu Takano of trading house S.Ishimitsu & ...

Source: RG