03/02/2025
Market Update for 3rd February 2025 📣
Key Highlights:
• Historic Highs for Arabica Coffee: Coffee futures reached a peak of 381.05 USD on January 31st, 2025, driven by concerns over stock levels and production.
• Production Declines:
◦ Vietnam: A 5-10% drop in 2024 coffee production due to extreme weather and crop shifts, but a 10% recovery is expected in 2025.
◦ Brazil: A 10% decline in Arabica production is expected this year, though Robusta production is expected to rise by 21%. The 2025-2026 harvest faces drought and logistical delays.
◦ Colombia: Political tensions and potential decertification over illicit coca cultivation could impact exports, but local coffee prices remain at record highs.
• Stock Levels: Coffee stocks in European ports rose by 25% in December 2024, totaling over 9 million 60-kg bags.
• Inflation and Currency Impact: Coffee prices remain high globally, with U.S. coffee inflation slightly decreasing to 11.2%, while the EU and Brazil see continued price increases. The weak Australian dollar adds pressure on Australian roasters.
Stay informed about these market trends to optimise your sourcing strategy and adapt to evolving supply chain challenges. Visit our website for the full update! 🔗