The heat in Asia has raised coffee prices to a maximum
World coffee prices rose by about 20% in the second quarter amid extreme heat in the main growing regions of Asia.
According to Nikkei Asia, robusta coffee futures in London were 18.1% higher at the end of June than at the end of March, and reached a historic high of $4394 per ton on June 6.
Arabica coffee futures rose by 20.6%.
The main reason for the price jump was the heat wave in Southeast Asia. Since April, average temperatures in Vietnam, Thailand and the Philippines have been above normal and reached 48°C.
In Vietnam, farmers are facing a drought that could affect the fall harvest. Vietnam produces about 40% of the world’s robusta beans, which are used to make instant coffee.
“The robusta harvest last year was low, so prices are rising on fears that the second consecutive year of poor harvest will continue to tighten the supply and demand balance,” said Masanobu Takano of S.Ishimitsu & Co.
The hot weather in Southeast Asia also affected the cost of natural rubber, which accounts for a significant portion of Thailand and Indonesia’s exports. On June 10, rubber futures quotes on the Osaka Stock Exchange reached their highest level since mid-March at 360.9 yen ($2.23) per kilogram.
Got additional questions?
We will be happy to assist!
Write to us
Our manager will contact you soon