Arabica coffee futures on ICE were trading around $2.4 at the start of 2022, not far from the 10-year high of above $2.50 set on December 6th, amid a deterioration in the outlook for Brazil's crop with drought and frosts in 2021 denting prospects and fears that recent rains had been excessive in some areas. At the same time, persistent shipping bottleneck caused by Covid-19 restrictions, rising global demand, higher costs of fertilizers and fuels and ongoing labor shortages should continue to exert upward pressure on coffee prices. The US Department of Agriculture in its latest report forecasts world coffee production for 2021/2022 to fall by 8.5 million bags from the previous year to 167.5 million primarily due to a drop in Brazil’s coffee production. Global consumption is seen rising 1.5 million to 164.9 million bags in the same period.
Historically, Coffee reached an all time high of 339.86 in April of 1977. Coffee - data, forecasts, historical chart - was last updated on January of 2022.
Coffee is expected to trade at 189.15 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 220.73 in 12 months time.