World coffee prices stabilise as moderate rains return to Brazil

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Photo: Paulo Fridman/Bloomberg Photo: Paulo Fridman/Bloomberg

In our last newsletter we briefly discussed the soaring world coffee prices.

Since the start of 2014, prices of coffee on the world markets have risen significantly as a result of poor rainfall in Brazil, the world’s largest Arabica bean producer. According to the Daily Telegraph investing news, coffee stocks had risen around 70 per cent since the start of the year.

Moderate rains have now returned in recent weeks and the market has seen prices stabilise. They are currently sitting at 5-month lows.

Crop and weather problems in Brazil next season are guaranteed to send prices soaring again this time having a worse effect on the price consumers pay for their coffee. We have already seen some of the biggest industry players increase prices per cup.

The next 12-24 months remain uncertain but we’ll celebrate the current price stabilisation.

 

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