Coffee Prices Soar Past $3.60 Per Pound As Brazil’S Supply Tightens
Date
1/29/2025 7:01:32 PM
(MENAFN- The Rio Times) Global Arabica coffee prices reached record levels above $3.60 per pound on Wednesday. Brazil, the world's largest producer, faces a shortage of beans for sale. Concerns about the country's upcoming harvest persist.
Traders reveal that 70% to 80% of Brazil's current Arabica crop has already been sold. New deals progress slowly. Brazil produces nearly half of the world's Arabica beans, a high-quality variety typically used in roasted and ground blends.
The country's recent weather has improved following last year's severe drought. However, the next harvest will be 4.4% smaller than the previous one, according to the National Supply Company (Conab).
HedgePoint Global Markets stated on Wednesday that global coffee supplies remain limited. Vietnam's Robusta sales are advancing slowly. Arabica harvests from Central America and Colombia are taking longer to reach the market. Brazilian farmers show little interest in selling more.
Arabica coffee futures on the ICE exchange hit a record high of $3.6945 per pound earlier in the day. This increase brings the year's gains to nearly 15%. The contract later closed up 2.5% at $3.6655 per pound.
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Rising Commodity Prices
Robusta coffee, a typically cheaper variety used mainly for instant coffee , rose 0.9% to $5,609 per metric ton. This variety also saw significant price increases due to global supply constraints.
Other soft commodities experienced price movements as well. Raw sugar increased by 1.1% to 19.45 cents per pound. This marks a strong recovery from last week's five-month low. White sugar gained 2.2%, reaching $522.90 per ton.
New York cocoa futures climbed 3.3% to $11,745 per ton. London cocoa rose 1.6% to £9,138 per ton. These price increases reflect ongoing supply concerns in the global cocoa market.
The coffee market's current situation highlights the impact of supply constraints on commodity prices. Consumers may soon feel the effects of these price increases in their daily cup of coffee.
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