Latest news with #MaytaalAngel
Yahoo
10-02-2025
- Business
- Yahoo
Coffee futures in New York jump 6% to new record amid 'panic buying'
By Maytaal Angel and Marcelo Teixeira NEW YORK (Reuters) -Coffee futures in New York rose more than 6% on Monday in the ICE exchange to a fresh all-time high above $4.30 per pound, with some market participants citing panic in the market amid limited coffee availability. Arabica coffee futures hit a record for the 13th straight trading session. Reports of a dry, hot weather system forming over Brazil's coffee areas helped to drive the new price peaks, as farmers in the world's top grower are reluctant to sell. "Panic has finally shown up, prices will continue to rise," said Bob Fish, co-founder of coffee franchise Biggby Coffee, who has 350 stores in several U.S. states. "There are only two things that can stop this: one, Brazil and Vietnam have a good yield year (that is not expected until August 2026). Two, there is enough demand destruction in consuming countries because of the price increases," he said in a note about the rally. Fish suggested that coffee shops in the U.S. raise their prices, or risk seeing their profit margins "evaporate". Coffee futures in New York , seen as a global price benchmark, hit a record of $4.2410 per lb earlier, closing up 6.2% at $4.211 per lb. The spot contract, which expires in March, hit a peak at $4.3195/lb. Prices are up around 35% so far this year after soaring 70% last year. There is concern in the market about low stocks in Brazil, which produces nearly half the world's arabica. Farmers there have sold some 85% of the current crop and are in no rush to sell more. "The coffee left in the balance sheet might be in the 'wrong' side of the world, lying at the hands of strong Brazilian producers," said a coffee broker, suggesting that farmers in the country are well financed. Dealers say, however, the rally in arabica has to some extent become self-perpetuating and out of sync with fundamentals. "There are those who believe the next Brazilian harvest could be better than expected, not so much as to exceed last year's, but enough to make the outlook a little brighter," said trader Icona Cafe. Broker Hedgepoint even expects Brazil to produce more coffee this year than last, noted Icona, with 64.1 million bags pencilled in for 2025/26 versus an estimated 63.4 million for the prior season. Meanwhile ICE arabica speculators - key in driving the current price surge - cut their net long position, or bets on further price gains, by 3,130 contracts to 50,333 contracts in the week to February 4, industry data showed. Robusta coffee, a cheaper alternative to arabica used mostly to make instant coffee, rose 2.4% at $5,697 a ton, having hit its highest on record on January 31 at $5,840. In other soft commodities traded, New York cocoa fell 2.3% to $9,878 a ton, having posted a loss of 7% last week, while London cocoa fell 1.7% to 7,919 pounds per ton. Raw sugar futures rose 0.7% at 19.50 cents per lb, while white sugar rose 0.3% at $519.40 a ton.
Yahoo
10-02-2025
- Business
- Yahoo
Coffee in New York jumps 6% to new record amid 'panic buying'
By Maytaal Angel and Marcelo Teixeira NEW YORK (Reuters) - Coffee futures in New York rose more than 6% on Monday in the ICE exchange to a fresh all-time high above $4.30 per pound, with some market participants citing panic in the market amid limited coffee availability. Arabica coffee futures hit a record for the 13th straight trading session. Reports of a dry, hot weather system forming over Brazil's coffee areas helped to drive the new price peaks, as farmers in the world's top grower are reluctant to sell. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. "Panic has finally shown up, prices will continue to rise," said Bob Fish, co-founder of coffee franchise Biggby Coffee, who has 350 stores in several U.S. states. "There are only two things that can stop this: one, Brazil and Vietnam have a good yield year (that is not expected until August 2026). Two, there is enough demand destruction in consuming countries because of the price increases," he said in a note about the rally. Fish suggested that coffee shops in the U.S. raise their prices, or risk seeing their profit margins "evaporate". Coffee futures in New York , seen as a global price benchmark, hit a record of $4.2410 per lb earlier, closing up 6.2% at $4.211 per lb. The spot contract, which expires in March, hit a peak at $4.3195/lb. Prices are up around 35% so far this year after soaring 70% last year. There is concern in the market about low stocks in Brazil, which produces nearly half the world's arabica. Farmers there have sold some 85% of the current crop and are in no rush to sell more. "The coffee left in the balance sheet might be in the 'wrong' side of the world, lying at the hands of strong Brazilian producers," said a coffee broker, suggesting that farmers in the country are well financed. Dealers say, however, the rally in arabica has to some extent become self-perpetuating and out of sync with fundamentals. "There are those who believe the next Brazilian harvest could be better than expected, not so much as to exceed last year's, but enough to make the outlook a little brighter," said trader Icona Cafe. Broker Hedgepoint even expects Brazil to produce more coffee this year than last, noted Icona, with 64.1 million bags pencilled in for 2025/26 versus an estimated 63.4 million for the prior season. Meanwhile ICE arabica speculators - key in driving the current price surge - cut their net long position, or bets on further price gains, by 3,130 contracts to 50,333 contracts in the week to February 4, industry data showed. Robusta coffee, a cheaper alternative to arabica used mostly to make instant coffee, rose 2.4% at $5,697 a ton, having hit its highest on record on January 31 at $5,840. In other soft commodities traded, New York cocoa fell 2.3% to $9,878 a ton, having posted a loss of 7% last week, while London cocoa fell 1.7% to 7,919 pounds per ton. Raw sugar futures rose 0.7% at 19.50 cents per lb, while white sugar rose 0.3% at $519.40 a ton.
Zawya
29-01-2025
- Business
- Zawya
Coffee prices surge to record highs above $3.60 per lb
Global arabica coffee prices hit record highs above $3.60 per lb on Wednesday as Brazil, by far the world's largest producer, has few beans left to sell and as worries over its upcoming harvest persist. Dealers said 70%-80% of Brazil's current arabica harvest has been sold and new trades are happening at a slow pace. Brazil produces nearly half the world's arabica beans, a high-end variety typically used in roast and ground blends. The country experienced severe drought last year though recent weather has been more favourable. Still according to Brazil's food supply agency Conab, the upcoming crop will be 4.4% the current one. As such, arabica coffee futures on the ICE exchange, used to price physical coffee grades around the world, hit a new record of $3.6490 per lb earlier, bringing gains for the year up nearly 15%. They traded up 1.7% at $3.6380 per lb by 1120 GMT, while robusta coffee futures, a generally cheaper variety used mostly to make instant coffee products, rose 0.6% to $5,553 a metric ton. Coffee exports from India, the world's fifth largest robusta producer, are expected to decline more than 10% in 2025 due to lower production and reduced carry-forward stocks from last season's crop. Dealers said farmers in both India and Vietnam, the world's top robusta producer, are holding back sales in anticipation of further price gains and that in Brazil, some 80-90% of the current harvest has been sold. Broker Sucden said in a report that Brazilian farmers are also prioritising local sales over dollar priced exports even though the latter fetch more money as their financial position has improved significantly over the past two years. It added the country's current buffer stocks have eroded to an estimated 500,000 bags versus some 8 million bags traditionally, meaning any additional weather disruptions could have an outsized impact on global coffee prices. Sucden sees the global coffee market recording a fourth successive deficit this season. In other soft commodities traded, raw sugar rose 0.4% to 19.30 cents per lb, rebounding strongly from last week's five-month low, while white sugar gained 0.9% to $516.10 a ton. New York cocoa futures rose 2% to $11,409 a ton, while London cocoa was up 0.8% at 9,113 pounds a ton. (Reporting by Maytaal Angel; Editing by Shounak Dasgupta)
