Cost Of Coffee Surges To Highest Price Since 1997 – CoffeeTalk

Coffee futures in New York have reached their highest level since 1997 due to concerns about crops in top growers, posing a threat to further increase costs for roasters and consumers. The high-end Arabica variety, favored for specialty brews, rose by up to 3% on Monday. Coffee prices have surged this year due to supply disruptions in key producers from Brazil to Vietnam, with the more budget-friendly robusta type used in instant drinks recently hitting the highest since the 1970s. Concerns have mounted that supplies from Brazil will slow after a long drought that hurt coffee trees, potentially reducing next season’s output. The potential for next year’s harvest has been impacted by the long dry and hot period that affected arabica coffee crops until September. The US Department of Agriculture’s Foreign Agricultural Service sees Brazil coffee inventories reaching only 1.2 million bags by the end of the current season, a 26% decrease compared to the previous year. Coffee’s rally highlights how some agricultural goods are still squeezing consumer budgets despite broader wholesale food costs pulling back from a record high set in early 2022.

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