Are Arabica coffee prices forecasted to fall around 30 by end 2025?
LONDON, Feb 13 (Reuters) – Arabica coffee futures are expected to fall by around 30% by the end of 2025, with recent record high prices expected to curb demand and early signs pointing to a bumper Brazilian crop next year, a Reuters poll showed on Thursday. For most investors, commodities like coffee work best as a small part of a diversified portfolio, rather than a primary investment strategy. But if you’re fascinated by the global coffee market, its price swings, and the economics behind it, it’s definitely a space worth watching.The price hike is driven by a perfect storm of factors. Coffee is traded on global stock exchanges, and speculation has inflated prices without benefiting the farmers. Meanwhile, extreme weather in top-producing countries like Brazil, Colombia, and Vietnam has led to poor harvests.With an annual worth surpassing $100 billion, the coffee industry presents a vibrant market for profitable ventures and market speculation. Some key features of coffee trading include high volatility, liquidity, and a range of financial instruments, offering both opportunities and risks for traders.Coffee trading involves buying and selling coffee on the commodities market, either physically or through financial instruments like futures, options and CFDs. Traders speculate on the price movements of coffee beans – primarily arabica and robusta – to profit from fluctuations driven by supply and demand factors.trading coffee futures coffee futures have traded in new york since 1882, first on the new york cocoa exchange (later part of the coffee, cocoa and sugar exchange), then on the nybot and now on ice and nymex. The futures are traded in cents per pound. One contract of coffee controls 37,500 pounds of coffee.
Will coffee prices fall?
Coffee prices are continuing to fall according to Intercontinental Exchange (ICE), with the price registered on 17 June 2025 the lowest recorded in almost five months. ICE Coffee C Futures contract on 17 June fell 2. US$3. To protect against falling prices, you sell coffee futures contracts at $2. If the price falls to $1.LONDON, Feb 13 (Reuters) – Arabica coffee futures are expected to fall by around 30% by the end of 2025, with recent record high prices expected to curb demand and early signs pointing to a bumper Brazilian crop next year, a Reuters poll showed on Thursday.Analysts predict that coffee prices will remain elevated through 2025 due to ongoing supply constraints and strong global demand. Citigroup and ING have raised their price forecasts, anticipating that prices will normalize only if production improves in key regions.
Is coffee going to skyrocket?
Cost of climate change As with the cost of other global commodities, supply and demand are a large part of the equation. Getting caffeinated is likely to become an ever-costlier proposition because of rising temperatures, droughts and excessive rains striking Brazil and Vietnam, the world’s two biggest producers. The price hike is driven by a perfect storm of factors. Coffee is traded on global stock exchanges, and speculation has inflated prices without benefiting the farmers. Meanwhile, extreme weather in top-producing countries like Brazil, Colombia, and Vietnam has led to poor harvests.Coffee costs have already gone up because of the market and climate change, and we assume the baseline 10% tariff will hold. Cafe Grumpy could raise prices about 10% across the board, according to Bell.By 2050, experts predict that climate change could kill off the 2 main coffee varieties we drink daily while also jeopardising 60 per cent of the planet’s 124 wild coffee plants. The news will come as a shock to Australia’s 11 million daily coffee drinkers ahead of World Coffee Day on 1 October.You may already be aware but as we enter 2025, spot green coffee prices have surged to unprecedented levels. Several factors, including climate change, supply chain disruptions, and rising global demand, are driving this significant price increase.
What is the prediction for coffee price?
Coffee is expected to trade at 297. USd/Lbs by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 324. Coffee is expected to trade at 377. USd/Lbs by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 413.In Robusta, prices are quoted in dollars per metric ton and traded in a standardized quantity of 10 tonnes. Other versions of coffee which are traded on the Tokyo Grains exchange are priced in yen, while the Liffe listed coffee contracts are priced in British pounds.In February 2025, the average price of raw industrial Arabica coffee on the New York Stock Exchange reached a new historical record of 440. USC/lb (9. USD/kg). This represents an increase of over 100% in the past 12 months, translating to approximately 20 PLN per kilogram of raw coffee.
Is it smart to invest in coffee?
Is Coffee a good investment? Investing in coffee can be a good option for those looking for a stable commodity to diversify their portfolio. The coffee market is one of the most active commodity markets in the world, with an estimated 2. In the Coffee market, volume, at home is expected to amount to 6. Volume, out-of-home is expected to amount to 1. Volume, combined is expected to amount to 7. The Coffee market is expected to show a volume growth, at home of 1.Coffee forecast for 2025 and beyond In its December 2024 forecast, ING predicted a full-year average price for US Coffee of $2. Q1, $2. Q2, $2. Q3, and $2. Q4.The Coffee Market Is Growing Rapidly Out-of-home revenue – generated in restaurants and bars – will touch US$376. Combined revenue in 2025 is expected to hit US$473. The revenue, at home is expected to grow annually by 2. CAGR 2025-2029).