Coffee prices settled lower on Friday after reaching their highest levels in nearly 50 years during the session, driven by concerns that Brazil, the world’s top coffee producer, is struggling to recover fully from this year’s drought, Reuters reports.
Arabica coffee futures dropped 1.5% to $3.1805 per lb, after peaking at $3.3545, the highest since 1977. Arabica prices have surged by 71% this year due to concerns over Brazil’s 2024 crop, which is still recovering from a drought. Some Brazilian farmers have delayed deliveries to secure higher prices, causing supply shortages and financial losses for traders expecting shipments. Robusta coffee, a cheaper alternative, also saw prices rise to a 47-year high before settling 2.7% lower at $5,377 per metric ton.
Meanwhile, Cocoa futures rose, driven by supply shortages in Ivory Coast and Ghana, climbing 3.9% to $9,425 a ton. However, sugar prices fell with raw sugar dropping 2.8% to 21.08 cents per lb, and white sugar losing 1.5% to $547.70 per ton.
