Mumbi Gitau and Charlotte Hughes-Morgan of Bloomberg report that Arabica coffee futures are up roughly 40% this year as the 2025/26 season nears. They write:
A cup of coffee is set to get even pricier as persistent supply disruptions push costs for premium arabica beans to the highest in 13 years.
Futures surged as much as 4.8% to $2.718 a pound in New York, the highest since 2011. Prices are up roughly 40% this year as shortages of the cheaper robusta beans stoke demand for the arabica variety favored by specialty chains.
Coffee’s rally has been gathering pace from ongoing concerns about harsh weather in top producer Brazil. The nation is wrapping up its 2024-25 harvest and production prospects weakened after heat and dryness hurt fields. […]
Coffee’s advance is adding to inflation across the beverage aisle. Orange juice prices have also spiked due to production shortfalls and a record run-up in cocoa futures is boosting costs for chocolate drinks and desserts. Still, prices for other major staples — like grains — remain subdued, tempering overall food inflation.
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