Reuters: Higher prices paralyze global coffee trade

This was reported by Reuters. According to the source, on the ICE exchange, futures for Arabica rose immediately by 70%. The sharp rise in prices occurred as a result of lower production in coffee countries. Like Brazil. As a result, the demand for coffee consumption fell, and its producers faced the fact that they could not sell the entire volume of the product. “Normally we would have sold everything, but so far less than 30% of the products have been sold,” said Renan Chuairy, CEO of Elcafe. Strong price increases eat away at buyers’ money, and they do not have the means to purchase the necessary volumes. According to him, in previous years, by March this company for the production of instant coffee managed to sell the entire product. However, according to some forecasts, Arabica may soon become cheaper by 30%. This may be due to falling demand, as well as the expected high coffee harvest in Brazil. A fall in coffee prices is possible by the end of 2025. Now there are risks in relation to the sellers of the drink. High prices and falling demand for the drink could force some companies to close. “They do not know whether they will be able to sell their products at new prices. Some of them are going bankrupt, the CEO of a major coffee roasting company in the United States was quoted as saying. In February, coffee prices continued to rise. Their jump was triggered by bad weather in key coffee producing countries. So, in Brazil in 2024 there was a dry autumn, which lowered the forecast of the harvest. In Russia, according to some forecasts, this year coffee may rise in price by 20-25%.

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