Robusta has reached an all-time high of $4877.41!!!Coffee prices have surged to unprecedented heights, with Robusta reaching a record-breaking $4877.41.Meanwhile, Arabica prices have plateaued, despite initial gains, as a depreciating Brazilian real has prompted exporters to sell.Unfavorable weather conditions in Brazil and Vietnam are bolstering coffee prices, with predictions of frost and drought potentially harming crops.
Specifically, concerns about dry conditions in Vietnam are driving up Robusta prices, which could lead to a global shortage.
Vietnam’s coffee output is expected to decline by 20% this year, with exports already down 12.4% compared to the same period last year.In contrast, Brazil’s coffee exports have skyrocketed by 44% year-over-year, which is likely to put downward pressure on Arabica prices.
On a global scale, coffee stockpiles are recovering from historically low levels, which is also expected to negatively impact prices.
According to the International Coffee Organization, global coffee production increased by 5.8% last year, resulting in a surplus of 1 million bags.Furthermore, the USDA has forecasted a 4.2% increase in global coffee production for the 2024/25 season, which could lead to downward pressure on prices.More By This Author:US500 Nears All-Time High Ahead Of Jackson Hall And Nvidia Report Gold Hits New Record High, Crossing Above $2500 XAUUSD Trades Near $2,455 Amid Continuous Geopolitical Tensions
