Coffee prices have surged this year due to climate issues, with analysts warning that it may take years for prices to return to average levels. Arabica coffee futures for March delivery hit a 50-year high of 348.35 cents per pound, a 70% increase this year. Known for its smooth and sweet flavor, Arabica accounts for 60-70% of the global coffee market. Brazil, the largest coffee producer, faced severe droughts and heavy rains, raising concerns about crop yields. The concentrated production in Brazil and Vietnam, which together produce 56% of the world's coffee, makes the market vulnerable to weather disruptions. Experts suggest that prices may continue to rise until supply improves and stocks are replenished.
Coffee Prices Surge Amid Climate Challenges, Impacting Global Supply
Dec 16, 2024
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