Arabica coffee futures rose to their highest level since 2011 due to drought in Brazil, one of the world’s main suppliers of coffee beans, Bloomberg reported.
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On the New York Stock Exchange, futures (a derivative financial instrument with an agreement on the price of a product and its delivery date) on Arabica coffee during trading on September 16 rose in price by 4.48% (according to data from 16%26 Moscow time) and reached $2.68 per pound, according to data from the trading platform.
Since the beginning of the year, Arabica futures have risen by 40%. The price increase is due to market participants’ concerns about weather conditions in Brazil, which is one of the world’s main coffee suppliers. Brazil is experiencing its worst drought in decades due to low rainfall throughout the year, which has led to difficult crop forecasts, the agency said.
Amid the turmoil surrounding coffee futures, major coffee producers such as JM Smucker Co. (Folgers and Café Bustelo brands) have already raised prices for the product, Bloomberg clarified. Russian coffee producers announced an increase in coffee prices in August 2023.
The Russian takeaway coffee market by the end of 2023 grew by 21% and amounted to 102.7 billion rubles, and the total revenue of the top 10 companies amounted to about 20 billion rubles, Vedomosti wrote.
Author:
Kirill Bilyk
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
