Coffee is one of the agricultural raw materials that will resume growth in 2021. Bad weather in Brazil has impacted agriculture and may benefit consumers.
In late July, coffee prices soared to nearly a seven-year high, trading at $ 2.07 a pound in New York amid frost concerns in Brazil, the main coffee producer, Jornal de Negócios writes.
The Arabica variety, which Negotsios explained is the global benchmark, accounting for 75% of world production, is now selling at $ 1.75 a pound as bad weather has not been so devastating.
The Robusta variety, the most consumed variety in Portugal, costs about $ 1,760 per ton, the newspaper writes.
Thus, coffee should reach the end of the year in good shape in the markets, and in this scenario, a rise in the price of coffee in restaurants and supermarkets may occur, writes Negotsios, citing Bloomberg.
But it’s not just coffee that is getting more expensive, writes Negotsios. The food industry is facing higher transport costs as well as container shortages.
The drought in Brazil has also affected corn and sugar crops, so some growth can be expected there as well.
Global demand could exceed production by about a million tonnes in the growing season, which begins in October, Negotsios writes.
