Harvested coffee beans in Laos
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Coffee consumption this year will exceed production for the first time since 2017, according to the US Department of Agriculture.
World prices for Arabica coffee in June reached their highest in five years. This could affect end-users, reports The Wall Street Journal on Tuesday, July 12th.
Thus, in June, prices for Arabica coffee reached the highest level since 2016. New York-traded futures for the variety have risen more than 18% over the past three months to $ 1.51 a pound.
Robusta, traded in London, has risen in price by more than 30% over the past three months, to $ 1,749 per tonne, a two-year high.
Among the reasons for the rise in the price of coffee, experts say the worst drought in the last century in Brazil, protests in Colombia and a sharp rise in the cost of sea transportation.
It is also reported that coffee consumption this year will exceed production for the first time since 2017. The USDA estimates that 165 million 132-pound standard bags will be consumed in 2021, up 8.1 million from last year. And world production will be reduced to 164.8 million bags.
So far, the rise in coffee prices has not affected end consumers, experts say. However, according to them, this may soon happen.
Recall in May Arabica coffee prices increased to four-year highs. Then the reason was the reduction in supplies from Brazil and logistic problems in Colombia.
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