Arabica and robusta coffee futures continue to rise due to weather and pandemic related hurdles in some of the world’s largest coffee producing nations.
Brazil, the world’s number producer of coffee, is expecting its total coffee harvest to post its biggest yearly decline since 2003 after record harvest in 2020 and 2021 due to extreme weather conditions. Arabica coffee, which makes up 70% of Brazilian coffee output coffee have seen its future prices double in price over the last 12 months. This August alone, Arabica futures rose by 12%.
Vietnam, the world’s second largest coffee producer and number one producer of robusta (90% of Vietnam’s coffee output) has been facing export problems due to container shortages and wave of lockdowns in coffee producing areas. The Vietnam Coffee-Cocoa Association (Vicofa) have urged the government to ease the restrictions for shipments.
London robusta coffee futures hit USD2,064 a tonne yesterday, the highest in nearly four years, before settling at USD2,023 per tonne.
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