Analysts have announced the timing of coffee price reductions.

On Tuesday, December 10, March Arabica futures on the London Intercontinental Exchange (ICE) rose to $3.48 per pound (0.45 kg), reaching their highest level since 1977, when snow destroyed large areas. of Brazilian plantations.

At 18:55 Moscow time on December 13, Arabica cost $3.2. In 2024 alone, the cost of this variety has increased by 70%. Robusta prices on the ICE have also almost doubled this year: at 18:55 Moscow time, January futures were trading at $5.2 thousand per ton.

The main reasons for the rise in coffee prices are drought, high temperatures and the global dependence of companies on supplies from relatively few regions, CNBC noted. Coffee prices are now rising amid concerns about the 2025 harvest in Brazil, the world’s largest coffee producer, which experienced its worst drought in 70 years in August and September.

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History suggests that coffee prices will only fall as supplies increase and inventories are replenished, said David Oxley, chief climate and commodities economist at Capital Economics. He clarified that this process may take not months, but years.

Over the past year, retail prices for coffee in the stores of large retail chains in Russia increased less than purchase prices, Igor Karavaev, president of the presidium of the Association of Retail Trade Enterprises (AKORT), told TASS. He noted that purchase prices rose an average of 20%, but retailers were “softening the jump in consumer interest.”