Restricted supply supports coffee prices in the global market

Published Dec 16, 2024

Tridge summary

Coffee prices are experiencing an uptick due to a anticipated decrease in production in 2025, attributed to climate issues impacting coffee plant development. The extent of the production drop will be known in late 2025, with a potential impact on the New York and London exchanges. Robusta coffee stocks are at a seven-and-a-half month low, and Brazilian producers might start selling from January with supplies accounting for 15% to 20% of the total harvest. Factors such as limited global supply, climate uncertainty, and low stocks are expected to continue to influence the coffee market.

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

Original content

Coffee prices began the week on the rise on international exchanges, reflecting a situation of limited supply in the market. According to the Carvalhaes Office bulletin, there is already a consensus among experts that coffee production in 2025 will be significantly lower than in 2024, due to persistent climate problems that have hampered the development of the next harvest. "The next harvest was significantly affected by repeated climate problems, but only from March 2025, at the end of summer, when we will know the volume of rainfall and temperatures in the coffee-growing regions of Brazil, will we have more precise data on production potential. In this scenario, and with climate uncertainties in the main producing countries, we should continue to observe strong fluctuations on the New York and London exchanges", highlighted the report. On Friday (13), the stocks of robusta coffee monitored by ICE reached the lowest level in the last seven and a half months, with 3,674 lots ...

Source: Portal Do Agronegocio