According to a Bloomberg market report, coffee futures in New York have surged to their highest level since 1997, driven by mounting concerns over crop supply shortages.
Arabica prices have risen by 3%, with futures for the coffee variety soaring 64% in 2024 due to significant disruptions in supply chains from major producers like Brazil and Vietnam. Meanwhile, robusta has reached its highest price since the 1970s.
The report highlights fears of dwindling Brazilian coffee supplies following a prolonged drought that has severely impacted coffee trees, potentially reducing next season’s production.
Adding to the pressure is the rapid export pace of arabica this year, which could lead to critically low reserves by the end of the season. The U.S. Department of Agriculture’s Foreign Agricultural Service estimates Brazil’s coffee stocks will drop to just 1.2 million bags by the end of June 2025—a 26% decline from the previous year.