(TheRedAlertNews.com) – Threatening to pinch American consumers’ wallets and stretch already struggling households, global coffee prices have surged to heights not seen in 47 years, that is, since 1977.
See a graph showing coffee prices since 1977 in the tweet below!
Coffee lovers across the U.S. now face the bitter reality of geopolitical chaos and unpredictable weather patterns.
Coffee aficionados might be displeased to discover that the price for Arabica beans has reached unprecedented levels, driven by an alarming convergence of climatic and logistical issues.
A pound of Arabica beans has soared to $3.20 in New York, surpassing a nearly 30-year high.
While the all-time high stood at $3.38 in 1977, recent reports indicate that coffee futures have climbed close to this historic peak.
These price levels are symptomatic of dangerously low supplies combined with sustained consumer demand.
Brazil, the world’s largest coffee producer, finds its crop yields hampered by severe droughts, despite recent beneficial rains.
These climatic adversities portend trouble for future crops, again raising concerns about the 2025/2026 harvest.
“Farmers are choosing to sell only what is necessary, thus limiting the coffee supply in the local market,” explained Guilherme Morya, senior analyst at Rabobank, cited by The Daily Sabah.
Geopolitical tensions also inflate coffee prices.
Shipping disruptions in the Red Sea, potential U.S. tariffs, and impending EU deforestation regulations add to the logistical nightmares faced by distributors.
Indeed, “Coffee futures extended their rampant rally to the highest in more than four decades,” report sources,” Bloomberg stresses in a report.
The situation is exacerbated as other major coffee-producing nations like Vietnam face similar trials, including dry conditions affecting Robusta bean supply.
Given these complex circumstances, price relief doesn’t seem in immediate sight.
Despite these predictions, the coffee world anticipates a stabilization of prices by 2026.
Yet, the road to normalcy is unpredictably bumpy, laden with geopolitical twists and unpredictable Mother Nature’s fury.
Until then, the American consumer will need to brace for this brewing storm at their local cafes.
NY Coffee prices are headed toward the highest price in history
For fifty years Coffee had remained range bound.
Will resistance hold the rally or is price headed toward 600 $KC_F pic.twitter.com/dzKdgVb9ZF— Peter Brandt (@PeterLBrandt) November 27, 2024
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