Coffee Futures Prices Hit 47-Year High

Coffee prices surged to nearly a 50-year high yesterday as concerns over global supply shortages were compounded by market uncertainty regarding the impact of new EU laws on deforestation.

Futures tracking high-quality arabica beans rose by 4.7% in New York, reaching $3.23 per pound, marking the highest levels since 1977 and pushing the year's price rise to over 70%. Meanwhile, cheaper robusta beans used in instant coffee saw London futures increase by 7%, climbing to $5,507 per tonne, nearly double the price at the beginning of the year.

Traders indicated that this movement was aimed at securing supply ahead of uncertainties concerning coffee roasters, commercial buyers processing the beans for consumption, potential shortages, and the implications of the new EU law banning the use of deforested land for crops.

Tomas Araujo, a trading partner at StoneX, stated, "I've never seen anything like this before. This situation won't be resolved this year, and that's why roasters have started to panic."