Coffee price is to set as all time high?

Coffee prices in the commodities market have reached a nearly five-decade high, owing to fears about poor circumstances affecting crop yield and continued supply chain difficulties. Coffee futures were trading over $3.28 per pound on Wednesday at the Intercontinental Exchange, topping the previous high of more than $3.11 established in 1977. It finished at slightly over $3.23 per pound on Friday. Similar to 1977, when Brazil, the world's largest producer of arabica coffee, experienced a coffee production crisis, the country is currently battling to fully recover from this year's drought, raising concerns about the harvest for next year. Arabica accounts for almost three-quarters of global coffee production. The robusta crop accounts for the remaining 25%. The Intercontinental Exchange provides a baseline for arabica coffee.

One of the biggest coffee exporters in the South American nation, Atlantica Coffee, released a report stating that "soil conditions still show a water deficit due to a prolonged lack of rainfall, leading to revised crop forecasts." It stated that "weather conditions in Vietnam and Brazil are still being closely monitored." One important producer of robusta is Vietnam. In another article, Atlantica stated that the Brazilian Coffee Exporters Council claims that exporters in the nation are having logistical difficulties when it comes to delivering the commodity. It stated that problems, such as adjustments to delivery schedules, prevented the shipment of more than 1.7 million coffee bags by October. Over 5,200 containers' worth of volume has been lost.

The cost of Arabica coffee has increased by over 70% this year. Along with cocoa, whose price has more than doubled, it is now one of the best-performing commodities.