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Coffee prices increase due to limited supplies
(MENAFN) The price of Arabica coffee hit the greatest level since 1977 in trading yesterday on worries of limited supplies driven by drought in Brazil the current year.
A pound of Arabica beans listed in New York reached 320.10 US cents, expanding the commodity’s rally through the previous year and pushing past a roughly thirty-year high the day prior.
The all-time posted high was 337.50 US cents in 1977.
Brazil, which is considered the biggest coffee producer in the world, experienced a score-breaking drought this year which has caused serious worries about the output potential for the crop in the upcoming couple of years.
The worries come even following crops benefited from “significant rains” that happened in the previous month, flourishing “excellent flowering”, based on Guilherme Morya, high-ranking expert at Rabobank.
Price increases have further been driven by geopolitical reasons such as interruption to exporting in the Red Sea, possible taxes and the future European Union policies on deforestation, based on experts.
A pound of Arabica beans listed in New York reached 320.10 US cents, expanding the commodity’s rally through the previous year and pushing past a roughly thirty-year high the day prior.
The all-time posted high was 337.50 US cents in 1977.
Brazil, which is considered the biggest coffee producer in the world, experienced a score-breaking drought this year which has caused serious worries about the output potential for the crop in the upcoming couple of years.
The worries come even following crops benefited from “significant rains” that happened in the previous month, flourishing “excellent flowering”, based on Guilherme Morya, high-ranking expert at Rabobank.
Price increases have further been driven by geopolitical reasons such as interruption to exporting in the Red Sea, possible taxes and the future European Union policies on deforestation, based on experts.
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