Future Arabic Cafes reached a record 13. successive trading session. Reports on the dry and hot period formed over the areas of coffee breeding in Brazil contributed to new priced tops, because farmers in the world’s largest country produce to sell their supplies.
“The panic purchase has performed, the prices will continue to grow,” Bob Fish, the FRANCHISE FRANCH I BIGGBY COFFEE, which has 350 stores in several American federal states.
“There are only two things that can stop this: First, Brazil and Vietnam have a good year of yield (no longer August 2026. years). Secondly, to reach a significant demand in consumer countries,” he stated He in note about the current market jump.
Fish suggested that cafes in the US increase their prices, or will face a loss of profit margins.
Fjuchers Arabic Coffee in New York, who are considered a global price indicator, have reached a $ 4,2410 record earlier during the day, closing the growth of 6.2% to $ 4,211 per pound. The spot contract, which expires in March, reached the peak of $ 4,3195 per pound.
Prices rose by about 35% of the beginning of the year, after they jumped 70% last year.
There is concerns on the market due to low stock in Brazil, which produces almost half of the world’s coffee Arabic.
Brazilian farmers sold about 85% of the current harvest and are not in a hurry to sell remaining stocks.
“The balance left in the balance could be on the ‘wrong’ side of the world, well-funded brazilian manufacturers,” said one broker, suggesting that farmers in the country have no pressure to sell quickly.
However, traders say that the current growth of the price of Arabic coffee to a certain extent became self-sustaining and that it is no longer in line with basic market factors.
“There are those who believe that the next brazilian harvest could be better than expected, not so much to exceed last year, but enough for market prospects to be something more optimistic,” Icon Cafe said.
Broker Hedgepoint even predicts that Brazil will produce more coffee this year than last, with the estimated 64.1 million bags for the season 2025/26, compared to the estimated 63.4 million for the previous season.
Meanwhile, speculators on Ice Arabic market – the key actors in the current growth of price, ie further price growth, for 3,130 contracts in the week in terms of 4. February, show data from industry.
Robusta coffee, a cheaper alternative to Arabiki, which is mainly used for the production of instant coffee, increased by 2.4% to $ 5,697 per ton, after 31. January reached a record $ 5,840.
From other soft goods that are traded, the prices of Kaka in New York fell by 2.3% to $ 9,878 after the last week had falled from 7%, while the prices of Kakaa in London fell by 1.7% on 7.919 pounds per ton.
Future of raw sugar increased by 0.7% to 19.50 cents per pound, while the white sugar increased by 0.3% to $ 519.40 per ton.
(Vijesti.ba)
