Coffee Prices Falling

THE BIG firms have spoken. Coffee prices are not looking good.
The C price, a global benchmark for the price of arabica, will continue to fall after a steep drop in October last year, according to predictions made by Goldman and other banks.

An expected increase in Brazilian coffee production alongside falling global demand will cause prices to drop well below the high of $2.58 per pound seen in February 2022.

The downward trend will only get worse with an anticipated increase in coffee production to 30 million bags and 13.1 million bags.

The price of arabica coffee enjoyed highs of $2 per pound and above, but it would take a severe frost outbreak similar to the one Brazil experienced in November 2021 for prices to rally.Poor weather conditions in Brazil, global supply chain turmoil, and rising demand caused prices to nearly double in February. At one point, there was concern that the price of robusta would go up because of the war in Ukraine.

The price fell to lows of $1.55 in October and November due to overly optimistic production figures and weak economic conditions. It dropped to less than $1.44 last week.Demand-side factors could have the biggest impact on prices in the future.