Reasons Behind the Soaring Global Coffee Prices

Arabica coffee futures prices have reached unprecedented highs due to limited coffee supply, causing panic in the market. Hot, dry weather in Brazil's coffee-growing regions and the reluctance of farmers in major coffee-producing countries to sell their remaining stock are contributing to the price surge. This has pushed arabica coffee prices above $4.30 per pound, a record high. Experts suggest that only a high-yield coffee crop in Brazil and Vietnam in 2026 or a significant decrease in demand due to high prices could reverse this trend. Coffee traders are concerned about low inventories in Brazil, a major global coffee supplier. While some speculate that Brazil's next harvest might be better than expected, the current situation points to continued high prices for both arabica and robusta coffee. Unfavorable weather conditions in key coffee-producing regions like Vietnam and Brazil have significantly impacted global supply.