Coffee prices are rising all over the world. This is the result of a prolonged drought in Brazil.
Coffee stocks are also dwindling. There are no preconditions for stabilization or falling prices. Futures are rising and threatening the world's supply.
The most popular varieties of coffee are robusta and arabica. Recently active robusta contracts have increased by 3.2%. Its reserves are rapidly decreasing. The situation is similar with arabica According to preliminary estimates, stocks have already decreased by 34,000 bags.
The situation is complicated by climate change in Brazil and by Vietnam's reduction of its production capacity.
Traders are closely monitoring the situation. Preliminary forecasts indicate that this year's harvest in Brazil will be very poor. As a result, both the price of produce in stores and the price of coffee in coffee shops will rise.
At the same time, exports of coffee beans are increasing. However, demand is growing even faster as people are forced to switch from expensive arabica to cheaper robusta. Farmers are struggling to meet world demand, and the situation is unlikely to improve.
Source: AgroNews
