Global Arabica coffee prices rose to a record high on Wednesday, surpassing $3.60 per pound. This came amid dwindling grain stocks in Brazil, the world’s largest coffee producer, informs Reuters.
Dealers say 70-80% of Brazil’s current Arabica crop has already been sold, and new deals have been slow. The country provides nearly half of the world’s production of this high-quality variety, which is commonly used for roasting and preparing ground coffee. Although weather conditions in Brazil have improved after last year’s drought, experts are predicting a 4.4% drop in harvest compared to the previous season.
Arabica coffee futures on the ICE exchange, a key benchmark for global prices, earlier hit an all-time high of $3.6945 a pound, marking a nearly 15% year-to-date gain. Later, trading closed at $3.6655 per pound, which is 2.5% higher than the previous indicator.
The price of robusta coffee, a cheaper variety used mainly for the production of instant coffee, also rose 0.9% to $5,609 per metric ton.
Coffee exports from India, the world’s fifth-largest producer of robusta, are expected to decline by more than 10% in 2025. This is due to reduced production and reduced stocks of last year’s harvest.
