Global coffee shortage

A global coffee shortage is expected, with Arabica prices up 70% since November and buyers cutting deals to the bone. This is reported by Reuters.

The main reason for the price increase was a decline in production in key regions, especially in Brazil, which is the largest supplier.

This has led to an acute shortage of grains, because of which many traders refuse long-term contracts and buy only the minimum necessary volumes.

Experts note that retail chains are not ready to accept the new prices, and negotiations with roasters are dragging on.

As a result, there is already a shortage of coffee in some US supermarkets.

In addition, warehouses at US ports are only half full, and some companies are refusing to lease storage space, indicating a sharp decline in trade.

Analysts expect that if the next harvest in Brazil turns out to be bountiful, it could lead to a collapse in prices.

Until then, however, the market will face serious difficulties.