Arabica coffee futures rose to above $1.36 per lb, its highest level since September 2017, as output in the main supplier Brazil is seen smaller than earlier expected due to drier-than-normal weather. Dutch bank Rabobank lowered Brazil's forthcoming crop forecast by 1.2 million bags and Colombia by 300,000 bags. The bank also reduced projections for total demand by half a million bags, pointing to a global supply deficit of 2.6 million 60-kg bags in 2021/22. Global inflation expectations and a shortage in global shipping container availability are also supporting prices. At the same time, the outlook for post-Covid demand remains strong.
Historically, Coffee reached an all time high of 339.86 in April of 1977. Coffee - data, forecasts, historical chart - was last updated on February of 2021.
Coffee is expected to trade at 128.59 USd/Lbs by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 108.94 in 12 months time.