16.09.2024, 17:12
Coffee prices soared to a record level in 13 years
Source: OREANDA-NEWS
OREANDA-NEWS The price of coffee on the ICE Futures exchange has soared to a record level in 13 years. This is evidenced by the data of the trading platform.
At the maximum, the price of December futures rose by 3.3 percent, to $2.58 per pound ($5.9 per kilogram). Since the beginning of the year, the price of Arabica has risen by 40 percent amid a shortage of Robusta coffee. The cost of November futures of cheaper grains at the moment increased by 4.02 percent, to 5.48 thousand dollars per ton.
According to analysts surveyed by Bloomberg, coffee has risen in price to its highest since 2011 due to fears of a shortage of supplies. Market participants fear a decline in coffee production in Brazil, the country's largest supplier of raw materials, after the heat and drought seriously damaged coffee plantations.
According to Rabobank analyst Carlos Mera, future arabica harvests are under threat, as the amount of precipitation in the areas where it is grown is constantly decreasing. At the same time, the coffee industry is suffering from port congestion, a global shortage of containers, disruptions in the Red Sea area, as well as "disappointing" harvests in Vietnam.
From May to August, a number of key agricultural regions in Brazil, producing about a third of the world's coffee, faced the most severe drought since 1981. The consequences of a prolonged period of abnormal heat and lack of precipitation in a Latin American country can be massive damage to the buds of coffee trees and a decrease in the yield of Arabica beans. As a result, the cost of coffee may increase even more.
At the maximum, the price of December futures rose by 3.3 percent, to $2.58 per pound ($5.9 per kilogram). Since the beginning of the year, the price of Arabica has risen by 40 percent amid a shortage of Robusta coffee. The cost of November futures of cheaper grains at the moment increased by 4.02 percent, to 5.48 thousand dollars per ton.
According to analysts surveyed by Bloomberg, coffee has risen in price to its highest since 2011 due to fears of a shortage of supplies. Market participants fear a decline in coffee production in Brazil, the country's largest supplier of raw materials, after the heat and drought seriously damaged coffee plantations.
According to Rabobank analyst Carlos Mera, future arabica harvests are under threat, as the amount of precipitation in the areas where it is grown is constantly decreasing. At the same time, the coffee industry is suffering from port congestion, a global shortage of containers, disruptions in the Red Sea area, as well as "disappointing" harvests in Vietnam.
From May to August, a number of key agricultural regions in Brazil, producing about a third of the world's coffee, faced the most severe drought since 1981. The consequences of a prolonged period of abnormal heat and lack of precipitation in a Latin American country can be massive damage to the buds of coffee trees and a decrease in the yield of Arabica beans. As a result, the cost of coffee may increase even more.
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