Skip to content Arabica Coffee Price Dip – December 19-2023
Reuters – The price of Arabica coffee recently dropped to $1.93 per pound. This decrease comes after it had reached its highest point in 13 months on December 12th. The decline followed an announcement by Conab, which increased its forecast for Brazil’s 2023 coffee production. The new estimate is now 55.1 million bags, up from the earlier prediction of 50.9 million bags in September.
Adding to this, the International Coffee Organization shared on December 15th that there was a slight increase in global coffee exports, growing 0.9% from the previous year to 9.53 million bags. Furthermore, Brazil’s Trade Ministry reported on December 1st an 8.5% increase in Brazil’s coffee exports in November compared to last year, totaling 235,000 million tons. These factors are playing a significant role in driving down coffee prices.
However, it’s important to note that Arabica coffee futures are still relatively high. This is mainly due to the dry weather conditions in Brazil, which is affecting coffee production. Specifically, the Minas Gerais region in Brazil, responsible for 30% of the country’s Arabica coffee, has received only 65% of its average rainfall over the past week, as reported by Somar Meteorologia.
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