Coffee futures in New York climbed over 6% on Monday, reaching an all-time high above $4.30 per pound. This surge is attributed to market panic driven by limited coffee availability, particularly amid a dry, hot weather system forming over Brazil's coffee-growing regions. Farmers in Brazil, the world's top coffee producer, are hesitant to sell, further exacerbating the supply concerns. Market analysts warn that coffee prices may continue to rise unless there is a significant increase in production or a substantial decrease in demand.
Coffee futures in New York rose more than 6% on Monday in the ICE exchange to a fresh all-time high above $4.30 per pound, with some market participants citing panic in the market amid limited coffee availability.
“There are only two things that can stop this: one, Brazil and Vietnam have a good yield year . Two, there is enough demand destruction in consuming countries because of the price increases,” he said in a note about the rally. Dealers say, however, the rally in arabica has to some extent become self-perpetuating and out of sync with fundamentals.
COFFEE PRICES COFFEE FUTURES BRAZILIAN COFFEE SUPPLY CHAIN MARKET PANIC
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