The goods market is now chaos. Yesterday, for the first time in its history, The price of termination contracts on the market C broke the $ 4 sign per poundBy closing $ 4 to Over the past few months, the price has flirted with a previous record of USD 3.39 established in April 1977, which finally convinced at the end of January.
It is here that once again I would like to point out that the highest level corrected with inflation in 1977 is more $ 17 in $ 2025 and we are not nearby. But in a tiny period it is an amazing reflection; We are not removed five years from a price drop below – and we remain below – 1 USD. This is more than twice as much as at the same time last year. The final result is good news for coffee producers around the world, but as always, the growing factor is the same: uncertainty.
Global supplies decrease, and general yields in some of the largest producing countries, such as Brazil, are decreasing and unable to supplement the supply. Climate change causes unpredictable weather patterns affecting production and make prices huge. And now the tariffs – and threat of tariffs – are added to the already unstable mixture. . The current US president has already applied a 25% tariff to all goods coming out of ColombiaIn this coffee, it was eventually withdrawn in 11 hours. Despite this, the threat of a wide tariff and the resulting trade war increased the instability of the markets.
Which, as in the past, can cause panic traders buy in fear that the price will raise even more, a kind of self -fulfilling prophecy, which can cause a price raise.
For now, chaos on the market is an agent for good, at least when it comes to coffee producers who historically gained a tiny end of the stick in these matters. (Your uncle of a handrail about the price of a cup of coffee may not quite agree.) But in instability it is not stable. This is tautological. And the market volatility is about it. Nobody knows where the price of coffee is going or how it will affect the manufacturer and the consumer. But at least for now it is for the benefit of the most exposed in the supply chain.
