Coffee prices have risen sharply as traders fret over declining supplies and ongoing drought in Brazil, the world’s largest coffee producer, Bloomberg reported.
Prices of both Arabica and Robusta coffee have risen amid concerns over global supply shortages.
Latest news
- Robusta prices rose 3.2% to $4,861 per tonne.
- Arabica stocks fell by more than 34,000 bags in New York certified warehouses this week, while robusta stocks continued to decline.
- Dry weather conditions in Brazil are affecting future crops, with temperatures expected to remain above average until mid-September.
List + Bessler, a major European coffee trader, attributed the situation to historically low levels in the New York and London markets, as well as adverse weather conditions in Brazil and lower production expectations in Vietnam.
In Brazil, Bloomberg meteorologist Diane Figueiredo warned that heat and drought are adding stress to crops, potentially affecting next year’s production.
While Vietnam, the world’s leading exporter of robusta coffee beans, has seen improved weather conditions, concerns remain about a decline in production after the impact of drought earlier this year.
As global inventories continue to decline, traders are closely monitoring weather conditions in Brazil and production expectations in Vietnam, as these factors are likely to continue to influence coffee prices in the coming months.
