What caused coffee prices to fluctuate so much this year?

Published Aug 26, 2024

Tridge summary

Coffee prices have reached record highs due to a combination of factors, including adverse weather conditions in key producing countries, shipping delaysss, and the anticipated EU Deforestation Regulation. These challenges, along with the effects of climate change on coffee production, are expected to keep prices volatile but ultimately lead to a decrease in 2025. However, the potential for increased price volatility due to climate change could result in significantly higher prices in the future. The article also highlights the challenges faced by farmers in maintaining coffee quality and income stability amidst these conditions.

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

Original content

Some expect prices to fall next year, but climate change and other factors could push prices higher in the long term, according to Nikkei Asia. Coffee prices have soared in recent months, with robusta coffee futures hitting a record in July. Robusta continues to trade above $4,000 a ton, while arabica coffee for June delivery on the New York Mercantile Exchange is above $2 a pound this month. “We used to think $2,000 was the peak” for robusta, said Kosuke Nakamura, import manager at Japan’s UCC Ueshima Coffee. “That was an unimaginable price a year or two ago.” Coffee futures remain high (Source: Refinitiv, Nikkei Asia) Coffee futures remain high (Source: Refinitiv, Nikkei Asia) The high prices reflect a number of factors. Coffee output in Vietnam - the world's second-largest producer - was negatively affected by El Nino last year. Vietnam's output was "not a huge disappointment", said Carlos Mera, head of agricultural commodity research at Rabobank, as the decline was larger than ...

Source: AgroInfo.vn