Global arabica coffee prices hit record highs above $3.60 per lb on Wednesday as Brazil, by far the world’s largest producer, has few beans left to sell and as worries over its upcoming harvest persist.
Dealers said 70%-80% of Brazil’s current arabica harvest has been sold and new trades are slow. Brazil produces nearly half the world’s arabica beans, a high-end variety typically used in roast and ground blends.
The country’s recent weather has been more favorable after a severe drought last year. Still, the upcoming crop will be 4.4% smaller than the previous, according to Brazilian food supply agency Conab.
“Global coffee supplies remain limited. Vietnam is progressing slowly with sales of its robusta crop. The arabica harvested in Central America and Colombia is taking longer to get to the market, and Brazilian farmers don’t show much interest in selling more,” said broker HedgePoint Global Markets on Wednesday.
Arabica coffee futures on the ICE exchange , a contract used globally to price physical coffee trades, hit a record high of $3.6945 per lb earlier, bringing gains for the year up nearly 15%. The contract later closed up 2.5% at $3.6655 per lb.
Robusta coffee , a generally cheaper variety used mostly to make instant coffee, rose 0.9% at $5,609 a metric ton.
