Record Arabica Coffee Prices Surge Amid Supply Concerns

Record Arabica Coffee Prices Surge Amid Supply Concerns

Global arabica coffee prices have reached unprecedented levels, exceeding $3.60 per pound, driven by dwindling supplies from Brazil, the world's largest producer. Concerns about the upcoming harvest have intensified as 70%-80% of Brazil's current arabica crop has already been sold, leading to sluggish trade activity. Despite improved weather conditions following last year's drought, the next harvest is expected to be 4.4% smaller than the previous one. Other coffee-producing regions, such as Central America and Colombia, are also experiencing delays in bringing their arabica beans to market, further tightening global supplies.

• Arabica futures hit a record high of $3.6945 per lb, reflecting a nearly 15% increase this year.

• Brazil's farmers are prioritizing local sales over exports, even as global prices rise.

• India's coffee exports are projected to decline by over 10% in 2025 due to lower production.

• Global coffee markets are facing a fourth consecutive deficit this season.

This situation highlights the fragility of the global coffee supply chain and the potential for further price increases. With major producers holding back sales and facing production challenges, consumers may see higher prices at cafes and stores. The ongoing supply issues could lead to significant market shifts, affecting both producers and consumers worldwide.

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