The heat in Asia has raised the global price of coffee to the maximum

Published Jul 9, 2024

Tridge summary

In June, coffee and rubber futures in London and Osaka saw significant increases due to rising temperatures in Southeast Asia, particularly in Vietnam, Thailand, and the Philippines. The region experienced its hottest weather since April, with temperatures reaching up to 48°C, leading to a drought in Vietnam that has adversely affected the robusta coffee harvest. This drought, coupled with last year's low crop, has led to a tight supply-demand balance, causing robusta coffee futures to hit an all-time high of $4,394 per ton. Arabica coffee futures also saw a rise of 20.6%. The hot weather has also negatively impacted the price of natural rubber, a key export for Thailand and Indonesia.

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Original content

According to Nikkei Asia, robusta coffee futures in London were 18.1% higher at the end of June than at the end of March, reaching an all-time high of $4,394 per ton on June 6. Arabica coffee futures rose by 20.6%. The main reason for the jump in prices was the heat in Southeast Asia. Since April, average air 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 autumn harvest. Vietnam produces about 40% of the global volume of robusta beans, which are used to prepare instant coffee. "Last year's robusta crop was low, so prices are rising on fears that the harvest will be poor for the second year in a row, and this will continue the tight balance between supply and demand," said Masanobu Takano of trading house ...

Source: AgroPortal.ua