World prices for coffee fall to 29-month low
The world prices for coffee has been going down for the last 29 months, while output remains on the uptrend.
A Bloomberg report showed that the price of arabica coffee for September delivery fell 3 percent to close at $1.1165 a pound on ICE Futures U.S. in New York. This is the biggest drop for a most-active contract since October 11.
“Earlier, the price touched $1.1155, the lowest since Jan. 20, 2016. The real dropped as much as 1 percent after tumbling 15 percent in the second quarter,” the report added.
While the prices are going down, output in Brazil, the world’s top producer and shipper for coffee, will also rise to a record this year.
This, according to report, is an advantage to some companies like Starbucks Corp., the world’s biggest coffee chain, and Nestle SA, which makes Nescafe and Nespresso.