27.11.2024, 18:04
Arabica coffee has risen to its highest price since 1997
Source: OREANDA-NEWS
OREANDA-NEWS During trading on November 27, the value of futures contracts for the March supply of Arabica coffee at the moment reached the maximum since May 1997 and approached the mark of $ 3.22 per pound. This is evidenced by data from the New York Stock Exchange ICE Futures.
At the peak, the quotes reached the level of 3,178 dollars per pound, or about 7006 dollars per ton. In comparison with the closing level of the previous trading session, the increase in quotations amounted to about 2.75 percent. Experts attribute such dynamics primarily to the concerns of market participants about the prospects of the harvest in Brazil. The current season in the Latin American country has become the driest since 1981, according to the Cemaden meteorological service.
So, the US Department of Agriculture (Ministry of Agriculture) previously predicted grain collections in the Latin American country at the end of the 2024-2025 agricultural year at the level of 66.4 million standard 60-kilogram bags, although before that the figure was estimated at 69.9 million. As for stocks at the end of the agricultural year, they are expected to amount to 1.2 million bags at the end of the agricultural year. This is 26 percent lower compared to last year's level.
Another major exporter of Arabica, Costa Rica, also missed significant harvest volumes due to bad weather. Heavy rains have destroyed about 15 percent of the annual harvest of this type of coffee in the country, according to analysts at the ICAFE research Institute. Against this background, since the beginning of 2024, Arabica has risen in price by about 70 percent in the United States, and robusta by 85 percent in the UK. Thus, the price of the January futures for Robusta coffee rose by 2.73 percent and reached the level of $ 5,299 per ton. Although usually this kind of coffee is usually half the price of Arabica.
Robusta is considered to be a more affordable coffee variety compared to Arabica, but this variety has recently risen significantly on the stock exchange. During trading on Monday, November 25, robusta quotes rose to a record level since the 1970s. Not only Brazil and Costa Rica, but also Vietnam faced problems with the harvest this year. Against this background, experts predict further price increases for roasters and consumers.
At the peak, the quotes reached the level of 3,178 dollars per pound, or about 7006 dollars per ton. In comparison with the closing level of the previous trading session, the increase in quotations amounted to about 2.75 percent. Experts attribute such dynamics primarily to the concerns of market participants about the prospects of the harvest in Brazil. The current season in the Latin American country has become the driest since 1981, according to the Cemaden meteorological service.
So, the US Department of Agriculture (Ministry of Agriculture) previously predicted grain collections in the Latin American country at the end of the 2024-2025 agricultural year at the level of 66.4 million standard 60-kilogram bags, although before that the figure was estimated at 69.9 million. As for stocks at the end of the agricultural year, they are expected to amount to 1.2 million bags at the end of the agricultural year. This is 26 percent lower compared to last year's level.
Another major exporter of Arabica, Costa Rica, also missed significant harvest volumes due to bad weather. Heavy rains have destroyed about 15 percent of the annual harvest of this type of coffee in the country, according to analysts at the ICAFE research Institute. Against this background, since the beginning of 2024, Arabica has risen in price by about 70 percent in the United States, and robusta by 85 percent in the UK. Thus, the price of the January futures for Robusta coffee rose by 2.73 percent and reached the level of $ 5,299 per ton. Although usually this kind of coffee is usually half the price of Arabica.
Robusta is considered to be a more affordable coffee variety compared to Arabica, but this variety has recently risen significantly on the stock exchange. During trading on Monday, November 25, robusta quotes rose to a record level since the 1970s. Not only Brazil and Costa Rica, but also Vietnam faced problems with the harvest this year. Against this background, experts predict further price increases for roasters and consumers.
Комментарии