Coffee is getting more expensive
The price of coffee could be on the way up again as the markets factor-in possible poor yields from the coming harvest. Low rainfall is to blame, which means the 400 billions cups drank ever year could cost a lot more.
The humble cup of coffee is not so humble nowadays, a fact which will shock drinkers in Spain and beyond.
The price of a cup of coffee is set to rise even further than the highs seen last February.
Back then, the price of coffee in Spanish shops rose by 23% compared to the same month in 2021. The figures come from the National Institute of Statistics (INE).
The coffee market is predicted to climb higher during the next crop cycle.
The US Department of Agriculture reported that the global demand-supply balance for coffee beans is currently looking fragile.
The trouble stems from what's left at the end of the last cycle - the 2023-2024 season - that can be used in the following season.
It is reckoned that at the start of the 2023-2024 season, there was barely 16% of future consumption available. Compare this to 33% which was available in the 2005-2006 season.
As to what we're likely to consume in this season, it comes in at 170 million 60kg bags, higher than any season for the last 20 years. In 2005-2006, the figure was 125 million bags.
Less rainfall is behind the reason for reduced inventories, as both Vietnam and Brazil have been hit by poor growing conditions.
Fears are that the current crop growing in both countries could be hit again by the weather.
Market observers predict that coffee producers might panic before the crop is harvested and push up prices whatever happens with the next harvest.
