Arabica coffee futures rose to a 4-year high of $1.5 per lb in May, boosted by prospects of weak crop volumes in Brazil and expectations of an impending rebound in demand. Dry weather in recent months in the world’s top producer of Arabica coffee has lowered output expectations for a harvest season that has already started. Also, Brazil entered an off-year in its biennial crop cycle and the uncertainty around production volumes is deterring producers from selling significant quantities. Meantime, the success of the vaccination rollout in the US and elsewhere, along with a strong earnings season from Starbucks, Keurig Dr Pepper, and Tata Coffee have supported the hypothesis that a strong rebound in coffee demand is soon due.
Historically, Coffee reached an all time high of 339.86 in April of 1977. Coffee - data, forecasts, historical chart - was last updated on May of 2021.
Coffee is expected to trade at 141.46 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 119.84 in 12 months time.