World coffee prices rose to their highest level in almost half a century on Friday
29 November 2024 15:42
The rise in coffee prices to a 47-year high is due to concerns about the harvest in Brazil, which is trying to fully recover from this year’s drought. This was reported by Reuters, according to "Komersant Ukrainian".
According to dealers, some Brazilian farmers have delayed deliveries of this year’s crop in the hope of securing even higher prices, leading to short-term supply constraints and large financial losses for traders who expected to receive coffee.
Arabica coffee prices have risen by about 75% this year, making it one of the best performing commodities alongside cocoa, which has more than doubled in price.
“The price trend now is very similar to that of cocoa at the beginning of the year. The reasons are also comparable,” Commerzbank said in a statement on Friday.
As noted, in the case of cocoa, it was a low harvest in the two most important producing countries – Côte d’Ivoire and Ghana. In the case of arabica coffee, it is a concern about a low next harvest due to drought in Brazil, the most important producing country.
The price of robusta coffee, a cheaper bean often used in instant coffee, also rose on Friday to its highest level in about 47 years.
