Arabica coffee futures on ICE traded around $2.4 per pound, remaining close to its highest level since October 2011, as investors balanced persistent supply disruptions with concerns about future demand after the discovery of a new COVID variant. Frost and drought destroyed crops in top shipper Brazil, excessive rains have limited production in Colombia while a shortage of shipping containers is curbing exports from Vietnam. On top of that, a civil war in Ethiopia is set to further limit the supplies. USDA in its latest report estimated both world coffee production and consumption to go up and reported that ICE monitored depots continue to decline, falling 77% over last year. Prices are likely to stay high as elevated shipping costs, high cost of fertilizers, and ongoing labor shortages eat into profits.
Historically, Coffee reached an all time high of 339.86 in April of 1977. Coffee - data, forecasts, historical chart - was last updated on December of 2021.
Coffee is expected to trade at 179.67 USd/Lbs by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 199.14 in 12 months time.