Coffee Prices

Brazil, the world's largest coffee producer, is grappling with severe drought and adverse weather conditions that have significantly reduced coffee yields. The result is a supply crunch that has pushed coffee stocks to their lowest levels in over two decades. Prices have surged past $3.60 per pound, reflecting the critical balance between shrinking supply and sustained global demand. Experts predict that Brazilian coffee prices will remain above $3 per pound in the coming months, underscoring the need for strategic purchasing decisions.

For European coffee importers, the weakening of the euro against the US dollar has added another layer of complexity. Over the past year, the euro has depreciated by approximately 6%, with rates fluctuating between a high of 1.1203 USD and a low of 1.0418 USD. This has driven up the cost of green coffee imports, further influencing pricing for roasters and consumers. The strong dollar makes it more expensive to procure coffee, challenging importers to absorb or pass on these costs.

The ripple effects of global supply chain disruptions continue to impact coffee logistics. What once took 90 days now stretches to 120-150 days, delaying shipments and complicating inventory planning. These delays add significant operational costs, forcing importers to plan further ahead to secure timely deliveries.