LONDON, March 7. /TASS/. World coffee trade has practically come to a standstill as coffee sellers have reduced purchases of coffee beans to a minimum due to a sharp rise in their prices, Reuters reported.
According to the report, participants of the annual meeting of the American National Coffee Association, which was held last week in Texas, said that they were shocked by the 70% increase in Arabica coffee futures on the ICE exchange.
Reuters said that the rise in coffee prices was due to a decline in production in traditional coffee-growing regions, including Brazil. At the same time, according to some forecasts, Arabica prices could fall by 30% by the end of the year as the high cost of the drink curbs demand. In addition, a large crop of coffee beans is expected in Brazil next year.
However, the agency noted that the future of some coffee sellers is currently in question due to prices. According to the agency's source in the coffee storage industry, warehouses near American ports where beans arrive from Central and South America are currently only half full.
In January, Bloomberg reported that wholesale coffee prices had recently surpassed the all-time high of the late 1970s, reaching $7.5 per kilogram. It was noted that retail prices would follow suit in a matter of days or weeks. In addition, coffee bean futures have risen 45% in the last six months. According to Bloomberg, the situation could be exacerbated by the introduction of sanctions by US President Donald Trump against Colombia, the second largest supplier of coffee to the US. Overall, the price of Arabica and Robusta has more than doubled in the past 12 months.