Coffee prices across the globe have surged by double digits, with Brazilian production expected to fall to its lowest level in four years.
- Arabica prices hit a five-year high in July. It is the main variety produced in Brazil, which is hit by its worst drought in nearly a century.
- Arabica futures have grown 18% to $1.51 a pound in the last three months.
- Robusta prices have climbed over 30% to $1,749 a metric ton in the past last three months to mark the highest in two years.
- The US Department of Agriculture predicts total Brazilian coffee production to fall to 56.3 million bags this year. This is the lowest since 2017’s 52.1 million bags, and the biggest yearly decline since 2003.
- Brazil’s Arabica production is expected to fall to 35 million bags in 2021, the lowest since 2011’s 34.7 million bags.
- Global consumption is predicted at 165 million bags this year. This will be the first time consumption will surpass production for the first time in 2017.