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Coffee prices have reached historic levels, marking their highest point in almost 50 years. On Wednesday, Arabica coffee futures rose 4.7%, hitting $3.23 per pound in New York, while robusta futures in London rose 7.7% to $5,507 per ton. This annual increase exceeds 70%, amid growing concerns about global supply and new European Union regulations.
Factors behind the increase
Impact on the market and consumers
European and American roasters have gone into “panic mode,” exacerbating supply shortages. According to experts, price pressure will continue as consumers face continued increases.
«The recent increases do not yet reflect the full impact of this latest hike. “Consumers should prepare for greater financial pain,” warned Carlos Mera, head of agricultural commodities at Rabobank.
Future prospects
With Brazilian arabica crops forecast to decline in 2025-2026 and high demand in major markets, the balance between supply and demand remains uncertain. This scenario reinforces concerns about costs in the industry and their impact on consumers.
Coffee, an essential drink for millions, is facing a transformation in its supply chain due to the combination of extreme climate events and increasing global regulation.
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