The price of Arabic coffee beans has risen to its highest level in almost 50 years. Pound this variety sold on stock exchange freight in New York cost 320.10 US cents on Wednesday (November 27, 2024). This is the highest price since 1977.
Drought in Brazil hits coffee prices. It is the largest manufacturer in the world
This high price is due to concerns about the upcoming harvest, especially in Brazil. The country is the world's largest coffee producer and has been hit by extreme drought this year. This could have a huge impact on next financial year's harvest.
Arabic and Congolese coffee are the two most commonly grown varieties of coffee, with Arabic being the most common variety. Congolese coffee (robusta) is traded in London. Recently, the price per ton was USD 5,200, after a record high of USD 5,829 dollars in mid-September.
It's not just the weather that affects coffee prices
The high price is the result of limited supply. Despite continued high demand, producers keep coffee beans in warehouses accident sharp price increase.
Unfavorable weather conditions are compounded by uncertainty related to geopolitical tensions and related transport problems, as well as the new US trade policy.
(AFP/home)
The article comes from the website Deutsche Welle