Coffee Prices Sharply Higher on Global Crop Concerns

[libertybele]

I couldn't believe the price of coffee today.  We have a Keurig and since hubby is the only that drinks it, he uses the K-cups.  He loves dark roast -- sticker shock today - over $28 for 32 K-cups!!!  It should last him awhile but the price was absolutely ridiculous.  The cashier commented that the prices that we're facing are like the Carter years (sigh).  If that is how Trump's economy is perceived, the GOP is in for a blue tsunami.

Coffee Prices Sharply Higher on Global Crop Concerns

March arabica coffee (KCH26) on Tuesday closed up +6.75 (+1.79%), and January ICE robusta coffee (RMF26) closed up +106 (+2.38%).

Coffee prices rose sharply on Tuesday as adverse weather sparked concerns about global coffee crops.  Arabica coffee has support due to dryness concerns in Brazil.  On Monday, Somar Meteorologia reported that Brazil's largest arabica coffee-growing area, Minas Gerais, received 26.4 mm of rain during the week ended November 21, or 49% of the historical average.

Robusta coffee rallied on Tuesday amid forecasts of heavy showers in Vietnam's Dak Lak province, the country's biggest coffee-growing region, which will further delay the harvest.

Shrinking ICE coffee inventories are also supportive of prices.  The US tariffs imposed on US coffee imports from Brazil have led to a sharp drawdown in ICE coffee inventories.  ICE-monitored arabica inventories fell to a 1.75-year low of 398,645 bags last Thursday, and ICE robusta coffee inventories fell to a 4.5-month low of 5,134 lots on Tuesday.  American buyers voided new contracts for Brazilian coffee purchases due to the tariffs on US imports from Brazil, thereby tightening US supplies, as about a third of America's unroasted coffee comes from Brazil.  US purchases of Brazilian coffee from August through October, during which President Trump's tariffs took effect, dropped by 52% from the same period last year to 983,970 bags.

Last Friday, arabica coffee tumbled to a 7-week low after President Trump signed an executive order late Thursday exempting Brazilian food products from tariffs, including the 40% tariff on Brazilian coffee.

In a bearish factor, StoneX forecast last Wednesday that Brazil will produce 70.7 million bags of coffee in the new 2026/27 marketing year, including 47.2 million bags of arabica, a +29% y/y increase.........


https://finance.yahoo.com/news/coffee-prices-sharply-higher-global-192402624.html

[roamer_1]

I couldn't believe the price of coffee today.  We have a Keurig and since hubby is the only that drinks it, he uses the K-cups.

You'll save a ton going back to drip - About half the money, for me.

[libertybele]

You'll save a ton going back to drip - About half the money, for me.

Yes, but he only drinks one or two cups a day, so any left over coffee would get dumped down the sink or used to water plants.

[roamer_1]

Yes, but he only drinks one or two cups a day, so any left over coffee would get dumped down the sink or used to water plants.

Mamma's got a 4cup drip maker... That's a mighty little bit compared to a 12 cup one.... And nothing says you have to make 12 cups neither... I make 2 scoops and 24 oz of water every day... 

[Smokin Joe]

Yes, but he only drinks one or two cups a day, so any left over coffee would get dumped down the sink or used to water plants.

You don't have to make a full pot, y'know.

Just make what you need.
(After 45 years of oil patch, as long as it isn't frozen and doesn't have something fuzzy floating on it, heat it up and it'll be okay.)

What gets me is that Trump is going to get blamed for equatorial weather and coffee crop shortages, which lead to higher bidding on available stocks, which means higher prices.

He has no control over any of that. Send the Juan Valdez's back to pick coffee beans.