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Express Tribune
30-01-2025
- Business
- Express Tribune
Coffee prices soar to record highs amid supply concerns
Listen to article Global arabica coffee prices surged unprecedentedly on Wednesday, reaching record highs above $3.60 per pound. This spike is being driven by a combination of dwindling supplies from Brazil, the world's largest coffee producer, and ongoing concerns about the upcoming harvest. According to dealers, approximately 70%-80% of Brazil's current arabica harvest has already been sold, leaving little supply available for new trades. Brazil, which produces nearly half of the world's arabica beans, is facing a situation where demand is outpacing supply, exacerbating price hikes. Although Brazil's weather has improved after a severe drought in recent years, the country's upcoming arabica crop is expected to be 4.4% smaller than last year, according to Brazil's food supply agency Conab. The global coffee market continues to grapple with tight supplies, with coffee-producing nations such as Vietnam and Central American countries also experiencing delays in getting their crops to the market. Arabica coffee futures, traded on the ICE exchange, hit a record high of $3.6945 per pound earlier in the day, marking an increase of nearly 15% this year. The contract later closed at $3.6655 per pound, reflecting a 2.5% gain. Meanwhile, the price of robusta coffee, a cheaper variety commonly used for instant coffee, rose by 0.9% to $5,609 per metric ton. India, the world's fifth-largest producer of robusta, is also expected to see a more than 10% decline in coffee exports in 2025 due to lower production and reduced carry-forward stocks from the previous season. Dealers reported that farmers in both India and Vietnam are holding back their sales in anticipation of further price increases. In Brazil, farmers prioritise local sales over exports, even though exports fetch higher prices, due to an improved financial position. The country's traditional buffer stocks have been depleted to about 500,000 bags, compared to the typical 8 million bags, heightening concerns that any adverse weather conditions could significantly impact global prices. Sucden, a prominent coffee broker, forecasts that the global coffee market will experience its fourth consecutive deficit this season, further tightening supplies and pushing prices higher. Raw sugar rose by 1.1% to 19.45 cents per pound in other commodities, rebounding from a five-month low, while white sugar increased by 2.2% to $522.90 per ton. Cocoa futures also saw gains, with New York cocoa rising by 3.3% to $11,745 per ton and London cocoa up by 1.6% to £9,138 per ton. With concerns over supply disruptions and declining stocks, the coffee market remains on edge as prices continue to climb.
Arab News
29-01-2025
- Business
- Arab News
Coffee prices surge to record highs above $3.60 per lb
Dealers said 70 percent-80 percent of Brazil's current arabica harvest has been sold and new trades are slowBrazil produces nearly half the world's arabica beans, a high-end variety typically used in roast and ground blendsNEW YORK: 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 said 70 percent-80 percent of Brazil's current arabica harvest has been sold and new trades are slow. Brazil produces nearly half the world's arabica beans, a high-end variety typically used in roast and ground country's recent weather has been more favorable after a severe drought last year. Still, the upcoming crop will be 4.4 percent smaller than the previous, according to Brazilian food supply agency Conab.'Global coffee supplies remain limited. Vietnam is progressing slowly with sales of its robusta crop. The arabica harvested in Central America and Colombia is taking longer to get to the market, and Brazilian farmers don't show much interest in selling more,' said broker HedgePoint Global Markets on coffee futures on the ICE exchange, a contract used globally to price physical coffee trades, hit a record high of $3.6945 per lb earlier, bringing gains for the year up nearly 15 percent. The contract later closed up 2.5 percent at $3.6655 per coffee, a generally cheaper variety used mostly to make instant coffee, rose 0.9 percent at $5,609 a metric exports from India, the world's fifth largest robusta producer, are expected to decline more than 10 percent in 2025 due to lower production and reduced carry-forward stocks from last season's 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 percent of the current harvest has been Sucden said in a report that Brazilian farmers are also prioritizing local sales over dollar-priced exports even though the latter fetch more money as their financial position has improved significantly over the past two 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 sees the global coffee market recording a fourth successive deficit this other soft commodities traded, raw sugar rose 1.1 percent at 19.45 cents per lb, rebounding strongly from last week's five-month low, while white sugar gained 2.2 percent at $522.90 a York cocoa futures rose 3.3 percent to $11,745 a ton, while London cocoa gained 1.6 percent to 9,138 pounds per ton.
Reuters
29-01-2025
- Business
- Reuters
Coffee prices surge to record highs above $3.60 per lb
LONDON, Jan 29 (Reuters) - 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 slow. Brazil produces nearly half the world's arabica beans, a high-end variety typically used in roast and ground blends. The country's recent weather has been more favourable after a severe drought last year. Still, the upcoming crop will be 4.4% of the current one, according to Brazil's food supply agency Conab. As such, arabica coffee futures on the ICE exchange , used to price physical coffee grades around the world, hit a new record of $3.6850 per lb earlier, bringing gains for the year up nearly 15%. They traded up 2.2% at $3.6550 per lb by 1553 GMT, while robusta coffee futures , a generally cheaper variety used mostly to make instant coffee products, rose 0.5% to $5,549 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 2.2% to 19.34 cents per lb, rebounding strongly from last week's five-month low, while white sugar gained 1.4% to $518.70 a ton. New York cocoa futures rose 2.4% to $11,456 a ton, while London cocoa was up 1% at 9,135 pounds a ton. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here.
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)
