Arabica coffee futures contracts on the ICE exchange fell to $1.52 a pound on Monday. This is proven by data trade economy.
The increased supply after a good harvest puts pressure on world prices. Arabica coffee slumped to its lowest level since January 13, 2023.
The drop in prices is due to expectations that the coffee harvest will be plentiful in Brazil, the world’s largest producer. According to Cooxupe exporters, the country has already harvested 74.9% of the crop in 2022, compared to 71.7% on the same date.
The US Department of Agriculture also made an optimistic forecast for Brazil for the current season. Interfax estimates that by 2023-2024, coffee production in Brazil will increase by 14.5% to reach 67.9 million bags.
According to the forecasts for June, all over the world USDACoffee production will increase by 2.5% due to the 6.9% increase in Arabica coffee supply. A total of 174.3 million bags of grain will be produced.
The increased supply after a good harvest puts pressure on world prices. Arabica coffee slumped to its lowest level since December 2022.
Recently, Ministry of Agriculture saidThe prices of tea and coffee in Russia depend on it.
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