The heat in Asia has raised coffee prices to a maximum

Published Jul 10, 2024

Tridge summary

In the second quarter, world coffee prices experienced a significant surge of approximately 20%, with robusta coffee futures in London jumping by 18.1% to a record high of $4394 per ton and Arabica coffee futures increasing by 20.6%. This price hike is primarily due to an extreme heatwave hitting the key coffee-growing regions in Asia, including Vietnam, Thailand, and the Philippines, where temperatures reached a severe 48°C (118.4°F) in Vietnam. The drought conditions in Vietnam, the world's largest robusta bean producer, are causing concerns about the fall harvest, leading to a tight supply-demand balance and further driving prices up. The heatwave is also impacting the cost of natural rubber, a significant export for Thailand and Indonesia.

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

Original content

World coffee prices rose by about 20% in the second quarter amid extreme heat in the main growing regions of Asia. According to Nikkei Asia, robusta coffee futures in London were 18.1% higher at the end of June than at the end of March, and reached a historic high of $4394 per ton on June 6. Arabica coffee futures rose by 20.6%. The main reason for the price jump was the heat wave in Southeast Asia. Since April, average temperatures in Vietnam, Thailand and the Philippines have been above normal and reached 48°C. In Vietnam, farmers are facing a drought that could affect the fall harvest. Vietnam produces about 40% of the world’s robusta beans, which are used to make instant coffee. “The robusta harvest last year was low, so prices are rising on fears that the second consecutive year of poor harvest will continue to tighten the supply and demand balance,” said Masanobu Takano of S.Ishimitsu & Co. The ...

Source: UkrAgroConsult