Arabica’s coffee rose to almost a seven-year record due to concern about the decline in deliveries due to frosts in Brazil, writes Trading Economics. It causes fears for the crop of next year.
Futures price at the auction of the New York Stock Exchange Ice Futures took off above two dollars per pound for the first time since October 2014. Brazil, the world’s largest manufacturer and coffee exporter, before that has already suffered from the strongest drought for almost a century. Because of this, there was one of the largest recessions of production for 20 years.
In addition, Colombia and Vietnam face delays in ports. According to the US Department of Agriculture, this year the consumption of coffee in the world for the first time since 2017 will exceed production. Arabica accounts for 75 percent of global production, it is mainly grown in Brazil (40 percent of the total world supplies) and Colombia.