Coffee has risen in price at a record

CNBC: Coffee Price Reaches a Ten-Year High According to analysts, market tensions will remain until 2023 due to low harvests and delays in supply chains, CNBC reports.

As a result of the trading session on Monday, the value of contracts for coffee for December amounted to $ 2.34 per pound. Coffee futures on the Intercontinental Exchange in New York hit $ 2.46, the highest in a decade. The International Coffee Association on Friday set a benchmark price of $ 2.07 a pound, up 85 percent from last year.

According to experts, the coincidence of several events important for the market led to a record rise in coffee prices. Ole Hansen, head of commodity strategy at Saxo Bank, said that the crop in Brazil, the world's largest producer of coffee beans, was in a “shaky state” as the country faced severe frosts and droughts in the summer. According to him, it is possible that unfavorable weather conditions affected the harvest not only at the end of 2021 and 2022, but also in 2023. In this case, he added, the risk of a further rise in price of the drink is quite real.

Global disruptions in transport chains also had a significant impact on the coffee market, since the roasting of beans, that is, preparing them for sale, often takes place in the wrong the country where the production is located. In addition, other key producing countries are also not doing well: Vietnam, the second largest exporter of coffee, is seeing a surge in the incidence of coronavirus, and Ethiopia introduced an emergency regime in early November amid escalating confrontation between the rebels and government forces. p>

Earlier, analysts at Credit Suisse urged to stop drinking coffee. They listed dietary and lifestyle changes that need to be made to combat global warming.