Saturday07 December 2024
podrobnosti.org.ua

Coffee prices have reached a record high for the first time in 27 years. What’s driving this unprecedented increase?

Currently, coffee prices are at their highest level in the past decade.
Цены на кофе впервые за 27 лет установили рекорд: в чем причина?
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For the first time since 1997, futures for the most popular coffee variety, Arabica, have surged to a record high. Reports TSN. This information comes from Kontrakty.UA.

According to Bloomberg, referencing trading data,

March 2025 contracts have increased by 3.03% and peaked at $3.11 per pound of Arabica. Simultaneously, trading for January deliveries of another popular coffee type, Robusta, has also risen — currently, 1 kg of this coffee costs $5.327.

Experts believe that the primary reason for the price rise to a 27-year high is news from Brazil, a major global coffee exporter. Traders note that due to poor harvests and drought, a shortage of coffee beans may occur.

The global cost of living crisis has forced people worldwide to switch to more affordable Robusta coffee, which has significantly increased demand while supply is scarce. This has contributed to the increase in its price.

Earlier, Fitch Solutions reported that coffee stocks at the Intercontinental Exchange are at the lowest level in a century.