Arabica coffe prices fall by the end of the year

Arabica coffee prices are forecast to end this year well below current levels and post an annual loss of 20% with the prospect of a larger Brazil crop next year weighing on prices towards the end of the year, a Reuters poll of 12 traders and analysts showed.

Prices were seen ending 2022 at $1.80 per lb, 20% lower than levels seen at the end of 2021, according to the poll’s median forecast

Robusta coffee prices were seen ending 2022 at $1,900 per tonne, 20% below levels at the end of 2021.

Poll participants cited the prospect of a larger Brazilian crop next year as weighing on prices, particularly in the final quarter of this year. Brazil’s coffee crop in 2023/24 was forecast to climb to 71 million bags, up from a median estimate of 63 million bags for the 2022/23 crop. Frosts and drought last year, which damaged this year’s coffee production in Brazil, are expected to cause an inversion in the country’s biennial crop cycle.

European Supermarket Magazine