Coffee Prices Surging to Record Highs

Robustas Hit Record High, Arabicas at 2022 Peak

London robusta futures, the global benchmark, soared to a record-breaking 3,948 per tonne on Friday, the highest since the contract's inception over 16 years ago. Coffee futures have witnessed a significant rally in recent months, with the benchmark robusta variety hitting a record high and arabica prices reaching their highest point since 2022. Arabica coffee futures in New York City experienced their most significant jump since May ahead of the expiration of July futures, resulting in an unusual premium for the commodity.

According to trading data on a contract for difference (CFD) that tracks Arabica prices, the commodity has seen an increase of 46.41 USdLbs, or 24.65%, since the beginning of 2024. These surging prices reflect the ongoing challenges faced by the coffee industry, including adverse weather conditions, supply chain disruptions, and rising demand.