Arabica coffee prices gained 6% during the week, while Robusta jumped 3% over the same period.
The world’s favorite drink coffee, is expected to head for further price gains this year as global supply lags demand for the third year. ED&F Man estimated there could be a shortage of 3.8 million bags for the next season, with Robusta beans heading for a big shortfall. The report from ED&F Man, one of the world’s leading coffee merchants, also expects prices to be tight, especially in the August 2023 to 2024 period.
Arabica coffee prices are trading at a nearly four-month high of $1.78 per pound. The variety is considered to be in short supply around the world as Brazil faces smaller than expected crops and a delayed harvest due to erratic weather conditions. Flower problems have been reported in key areas of the Brazilian state of Minas Gerais, the largest Arabica-growing region in the world.
Arabica coffee prices rose 6% during the week, while Robusta jumped 3% over the same period.
The street is also watching the decline in stocks on the Intercontinental Exchange (ICE), which global markets regard as the benchmark price. Stocks have fallen by 30,000 bags in the past eight days, leading to an increase in speculative positions.
| Current | 870,079 bags |
| February 8 | 891,933 bags |
The Indian Coffee Board has also revised the size of the 2022-23 coffee crop down by 8.36% to 3.6 lakh tons, although it is still larger than the 2021-22 crop by 3, 42 lakh tons.
First post: February 19, 2023 11:03 am EAST