Coffee price in the commodities market has reached an almost five-decade high following concerns of adverse conditions impacting crop output and ongoing supply chain issues.
Coffee futures were trading at around $3.28 per pound on Wednesday at the Intercontinental Exchange, surpassing the previous high of over $3.11 set back in 1977. It closed at just above $3.23 per pound on Friday. Similar to 1977, when there was a coffee production crisis in Brazil, the largest supplier of arabica coffee, the country is currently struggling to fully recover from this year’s drought, resulting in worries about next year’s crop.
Arabica makes up around three-quarters of global coffee production. The remaining 25 percent is accounted for by the robusta crop. The Intercontinental Exchange is a benchmark for Arabica coffee….