Arabica vs. Robusta - The Tug of Coffee Economics

Arabica vs. Robusta - The Tug of Coffee Economics

The premium price of Arabica coffee over Robusta is narrowing due to changing market dynamics, with Arabica experiencing a surplus and Robusta facing potential shortages. As Arabica's premium reached its lowest point since May 2019, concerns over El Niño-related dry conditions in Southeast Asia and supply disruptions in Vietnam could impact Robusta's harvest. Despite high prices, signs of consumer resistance suggest the increase may be temporary, especially with Brazil's coffee harvest beginning in May. Indian growers are optimistic about the potential for higher earnings from Robusta exports due to the anticipated deficit.

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