Global coffee prices are entering a series of increases that have not been seen since 1980

4 February 17:33

Coffee is headed for its longest streak of price increases since 1980 due to persistent supply problems in key growing regions, Komersant ukrainskyi reports with reference to Bloomberg.

Thus, futures on the Arabica variety, which is favored by coffee chains, rose on Tuesday to 1.6%. Premium beans rose in price for the tenth day in a row and are trading at almost $4 a pound, doubling in value over the past year.

Coffee prices on the stock exchange in New York
Arabica rose 0.8% to $ 3.8395 per pound, Robusta rose 0.7%.
Cocoa fell 0.5% to $10.855 per ton.

The Deficit in Brazil, the largest producer of Arabica, continues to worry traders, as record exports at the beginning of the season means less availability now. On Monday, Brazilian exporter Comexim Ltda. reported that production of both arabica and cheaper robusta in the country is expected to decline in the 2025-26 crop year.

Technical charts suggest that prices may have risen too much and too fast, and the Arabica Relative Strength Index has entered an overbought zone.

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“Technical indicators still look overheated,”

harry Howard, a broker at Sucden Financial, said on Tuesday.

According to him, the decline in certified stocks will continue to increase supply concerns.

Stocks in warehouses under the supervision of the exchange are now the lowest since November. However, the recent increase in the volume of coffee awaiting sorting may ease the tight supply situation on the exchange.

The main Arabica growing regions in Brazil also saw an increase in precipitation last week after long periods of dry weather, according to Somar Meteorologia.

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Остафійчук Ярослав
Editor