‘Farmaki’ means coffee: At record levels since 2011 Arabica’s price

It continues to be accurate as the constant supply disruptions prompt Arab variety grains to the highest level in the last 13 years, according to Bloomberg’s report. Time contracts increased up to 3.3% to $2.6805 per pound in New York City, the highest level since 2011. Prices have increased by about 40% this year, as the shortages of cheaper robusta coffee beans spur the demand for the arabica variety preferred by specialized chains. The coffee rally has been accelerated by the ongoing concerns about the difficult weather conditions in the leading Brazilian producer country as it completes the 2024-25 harvest and production prospects weakened after the heat and drought hit the fields. “Everything is about time,” said Kona Haque, head of research at ED& F Man, highlighting the conditions in Brazil’s main coffee growing areas and the lack of rain planned for the next fortnight. Attention is now turning to the potential of the next period and the South American country has been hit by the worst drought in recent decades, threatening with further crop damage. “The rainfall in the Arabica coffee growing areas was consistently below normal levels since the start of the dry season in April, said Rabobank analyst, Carlos Mera. “This problem comes at a time when the coffee industry suffers from port congestion in many countries, global container shortages, disturbance around the Red Sea, but also disappointing crops in Vietnam”. Robusta values have also been rising for over a week, taking a 3% jump today (16.9.2024).