Global arabica coffee prices surge past US$3.60 per pound amid supply concerns
WORLD – Global arabica coffee prices soared to record highs above US$3.60 per pound on January 29, 2024, as concerns over Brazil’s dwindling stock and the upcoming harvest fueled supply fears.
Arabica futures on the ICE exchange surged to an all-time high of US$3.6945 per pound, marking a nearly 15 percent increase since the start of the year.
Brazil, the world’s largest arabica coffee producer, has sold between 70 percent and 80 percent of its current harvest, leaving limited supplies for new trades.
The country, responsible for nearly half of the world’s arabica beans, has seen improved weather conditions following last year’s drought.
However, according to Brazil’s food supply agency Conab, the upcoming crop is expected to be 4.4 percent smaller than the previous harvest.
“Global coffee supplies remain limited. Vietnam is progressing slowly with sales of its robusta crop. The arabica harvested in Central America and Colombia is taking longer to get to the market, and Brazilian farmers don’t show much interest in selling more,” said broker HedgePoint Global Markets.
Robusta coffee also saw gains, rising 0.9 percent to US$5,609 per metric ton.
In Vietnam, the world’s top robusta producer, and India, the fifth-largest, farmers are holding back sales in anticipation of further price increases.
India’s coffee exports are projected to decline by more than 10 percent in 2025 due to lower production and reduced carry-forward stocks.
Meanwhile, Africa has seen a rise in coffee exports, benefiting from production declines in major producing countries.
Ethiopia, the birthplace of arabica coffee, recorded US$908 million in coffee export revenue over the past six months, surpassing its initial target of US$714 million.
The country exported over 200,000 tons of coffee during the period, crediting the success to increased production and productivity improvements.
For the current fiscal year, Ethiopia aims to generate US$2 billion in revenue by exporting more than 400,000 tons of coffee.
To achieve this goal, the Ethiopian Coffee and Tea Authority (ECTA) is promoting specialty coffee, which commands a premium price of up to US$5,500 per ton compared to US$2,800 for commercial-grade coffee.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
