Wholesale price for coffee plunges ( updated)
Consumers are being bludgeoned with inflationary food prices and that cup of coffee is right in there on the pain threshold.That package of coffee to grind at home is $12 to $15 at your supermarket today and that’s for a smaller package – not even a pound!
While coffee prices in the US are high, in Europe it’s even worse considering necessities like milk and sugar.“Recent price rises might make this morning staple almost a luxury,” Eurostat said, reporting that coffee prices had on average surged 16.9% in August from a year earlier. Milk prices are up there by 22%.
Part of the problem worldwide has been reduced coffee supply in part due to weather issues and climate change. Colombia produced 834,000 60kg bags of washed coffee in a month, down 31% from the same month last year.
But in the past few weeks the wholesale price of coffee has been plunging from the elevated levels seen this summer. Market observers say today that Arabica coffee futures on ICE extended losses toward $2 per pound, approaching levels not seen in over six weeks, as showers in Brazil’s coffee belt may aid the crop outlook. Forecasts for rains in Minas Gerais, which accounts for about 30% of Brazil’s arabica crop, are expected to provide much-needed moisture and improve the outlook for next year’s crop in the world’s top producer.
Today – October 14 – coffee futures prices for December are below $2 to $1.97/ lb after reaching over $2.30/lb in the past month.Today’s price is lowest in a year!
UPDATE: Oct 20 – Price down to $1.85
High prices are prompting countries to export more coffee now even as demand is falling due the same high prices. Coffee prices are under pressure due to a slower economy and inflationary pressures will curb demand in the out-of-home market like coffee shops. And now increasing coffee supplies from Vietnam are bearish for prices.
I have to admit I feel like a bear when I see those coffee prices at the supermarket.It’s even worse when I can’t get that cup of java.
Chart: lowest price in a year