Arabica coffee futures are in the midst of their longest bull run since the 1970s, with prices nearly doubling over the past year. Veuer’s Maria Mercedes Galuppo has the story.
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00:00Arabica coffee futures are in the midst of their longest bull run since the 1970s, with prices nearly doubling over the past year.
00:08The surge is driven by supply issues, particularly in Brazil, the world's largest Arabica producer, where both Arabica and Robusta crops are expected to decline significantly.
00:18An early export schedule has depleted stocks, and combined with forecasted lower production, traders are bracing for a potential supply squeeze.
00:26While recent rainfall in Brazil's key growing regions offers hope for improved harvests, the market is in overbought territory, signaling a possible price correction.
00:36As coffee prices climb, the ripple effect is being felt across the industry.
00:40Major coffee chains and retailers are closely watching the situation, with some reports suggesting that the surge in prices may eventually translate to higher costs for consumers, highlighting the coffee market's vulnerability to supply disruptions.