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Anticipation of Huge Harvest in Brazil Driving Coffee Prices Down

Expectations of a robust harvest in Brazil have driven coffee prices to their lowest in 18 months.

According to an Associated Press report, raw coffee is at its lowest price ($1.747 per pound) since October 2010, as Brazil prepares for its June harvest, which has been preceded by ideal weather.

Despite the drop in coffee prices, worldwide demand remains high, and Colombia is expected to see a shortfall this year due to excessive rainfall and diseased plants. For these reasons, sources in the Associated Press report suggest the drop in the price of coffee may have little impact on the retail level:

Despite the falling futures prices, coffee drinkers aren’t likely to see much change at the retail level because businesses still are paying more to produce and ship products, analysts have said.


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