Record-Breaking Coffee Prices Stir Global Market

On Friday, the global coffee market witnessed unprecedented price surges, with Arabica beans leading the charge. These beans, predominantly cultivated in nations such as Brazil, Colombia, Ethiopia, India, and Guatemala, are at the heart of the current market frenzy.

Factors Driving the Surge

Brazil's coffee production has been severely impacted by unexpected frosts and droughts, significantly disrupting supply chains. Meanwhile, Colombia's geopolitical tensions have added layers of uncertainty to the market. Compounding these issues are the escalating costs of production, including transportation and labor, which have further fueled the price hikes.

Moreover, the US government's strategic use of tariffs against key coffee-producing countries has introduced additional trade uncertainties, exacerbating the situation.

Market Reaction

In response to these developments, coffee futures for March experienced a 2.40% increase on Friday, reaching $4.13 per pound by 1:19 pm ET.