Coffee prices today, August 15th: Arabica prices fall by more than 4%.

Coffee prices on the world market decreased today (August 15). Specifically, Arabica coffee prices fell by 4.25% to $151.1 per ton.

World coffee price update

According to reports, coffee prices on the world market have decreased. Specifically, the online price of robusta coffee in London for September 2023 delivery was recorded at $2,620 per ton after a decrease of 1.95% (equivalent to $52).

Arabica coffee futures for September 2023 delivery in New York were at 151.1 US cents per pound, after falling 4.25% (equivalent to 6.7 US cents) at the time of this survey at 6:30 AM (Vietnam time).

Food prices have surged recently, with tomatoes reaching Rs 200/kg. Similarly, prices of several other items have also skyrocketed, and the Indian government attributes this primarily to seasonal factors.

Currently, coffee is also on the list of commodities experiencing price increases due to recent global shortages, according to the Deccan Herald.

According to the report, shortages have occurred in countries such as Brazil and Vietnam, and in addition, the fluctuating monsoon winds this year in India have also contributed to a similar situation, affecting domestic market prices.

In a recent report in the Deccan Herald, coffee growers from the Hassan coffee heartland, Chikkamagaluru, and Kodagu expressed dissatisfaction with several major issues affecting them, including volatile global prices, climate change (excessive rainfall even during the post-monsoon period and drought-like conditions in the summer), human-animal conflict, rising investment costs for cultivation, and denial of crop failure insurance, etc.

A resident of Matunga Lata Aaravind in Mumbai said that the price of regular mixed coffee grounds (a blend of robusta and peaberry coffee) has increased from around Rs 580/kg to around Rs 640-650/kg.

GM Dharmendra, a wholesaler of green (raw) coffee beans from Bengaluru, said he has lost 30 to 40 percent of his business in the past few months. He stated, "Many small coffee retailers in the area have closed down or are buying lower-quality coffee at cheaper prices. Many customers have switched to instant coffee."

Challa Srishant, a member of the Indian Coffee Board, said that despite some positive reports of a better coffee crop in Brazil, arabica coffee prices have started to decline slightly on the international market. Domestic prices will continue to squeeze regular buyers due to the aforementioned factors and primarily lower production.

Dr. Jayaram, President of the Karnataka Coffee Growers Federation (KCGF), said: “Since 2018, coffee growers in 10 slopes across these districts have been struggling due to excessive rainfall, labor shortages, and volatile prices. Yet none of the elected representatives have voiced their concerns in the National Assembly or Parliament.”

Source