Global coffee prices have soared to record highs as adverse weather conditions disrupt crops, driving up costs for consumers and pushing roasters to add lower-cost beans to their blends.
Prices for both robusta beans, used in instant coffee, and the higher-quality arabica variety have surged in recent months. London robusta futures, the global benchmark, reached a record $4,971 per tonne this week, while arabica futures traded in New York climbed to $2.49 per pound, close to their highest in decades.
“Prices may not have reached their peak,” said Steve Butler, co-founder of ChAI, a commodity price forecasting firm that uses artificial intelligence. He added that the rally has attracted speculators, who are likely to continue increasing their bets that prices will keep rising.