International Price of Coffee Rises

The dry weather in Brazil drove up the price of arabica coffee by 23% in a week, but the upward trend is not expected to last.

Tuesday, February 4, 2014

On Tuesday coffee prices reached their highest levels in several months caused by dry weather in Brazil, the largest producer and exporter in the world, which could affect the next crop.

"The price of Arabica increased by 23% in a week and 36% since last November, when it reached its lowest price in seven years (100.95 cents per pound)."

"But at the moment there is no guarantee that the rising price of coffee will continue. Because if it rains in Brazil in the coming weeks (...) prices would fall as sharply as they have increased," said commodities specialist at Capital Economics, Thomas Pugh.



More on this topic

Global Coffee Prices - April 2016

May 2016

Arabica and Robusta prices went in opposite directions this month, with Arabica prices dropping back down after March’s rally, while Robusta increased to the highest monthly average since November.

From the "Report on the coffee market in April 2016" by the International Coffee Organization:

Record Colombian Coffee Production

November 2015

The 2014/15 harvest of soft washed Arabica coffee amounted to 13.6 million bags each weighing 60 kilos, the highest figure in the last 22 years.

From a statement issued by the National Federation of Coffee Growers of Colombia (FNC):

Bogota, November 5, 2015 (Press FNC) Colombia, largest producer of mild washed Arabica coffee, recorded a harvest of 13.6 million bags of 60 kilos in the last twelve months (November 2014-October 2015), which is 12% more compared to the 12.2 million bags harvested in the period one year ago.

Further Increases Foreseen in Coffee Prices

October 2014

The price of futures reached the highest level in the last 32 months and market analysts project that in November there will be increases of between 10% and 12% in the retail price in USA.

On October 5, the future price of Arabica coffee up to December rose by 6.9% to $2,208 on the ICE Futures market in New York, the highest increase in active contract seen since April 22.

Market Changes Threaten Arabica Coffee

May 2013

The variety of coffee which is considered the best quality, is starting to have disadvantages compared to the robusta variety, both due to changes in consumer trends, as well as price.

This is the warning given by experts who gathered in Sao Paulo, Brazil. According to the manager of the research firm Olam Europe, Neil Rossner, the Central American countries affected by the rust blight, "failed to meet the challenge presented by Brazil and Vietnam", the world's largest producers of grain. "The Arabica segment is in crisis and the gourmet coffee strategy is threatened," he added.