Coffee Prices Hit Record Highs Since 1977 Due to Brazil’s Drought
The price of Arabica coffee surged to its highest level in nearly 50 years this Wednesday, driven by concerns over harvests in Brazil, which has been hit by severe droughts this year.
Arabica coffee traded at $3.20 per pound on the New York market, a price not seen since 1977. The spike is attributed to fears of poor harvests due to adverse weather conditions earlier this year, particularly in Brazil, the world’s largest producer of coffee and Arabica specifically.
Geopolitical factors have also contributed to the price increase, including shipping disruptions in the Red Sea, potential U.S. tariffs following Donald Trump’s election, and upcoming European Union regulations on deforestation.
In this uncertain environment, farmers are limiting sales to essential volumes, further constraining coffee supply.
The Robusta coffee, traded in London, is priced at around $5,200 per ton. In mid-September, it reached a record high of $5,829 per ton, a level not seen since 2008.
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Other Commodities
Meanwhile, on other commodities, WTI crude oil experienced a 3% decline on Monday, driven by news of a potential ceasefire between Israel and Lebanon, which improved the sentiment as it could ease concerns about supply disruptions from the Middle East.
Gold edged up 0.3% near the end of Wednesday’s session. However, the precious metal has accumulated a nearly 4% drop over the past month, driven by the strength of the U.S. dollar on the global stage following Donald Trump’s election victory.
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