Bad news for coffee lovers: prices are jumping because of this
A rise in coffee bean costs might soon affect your daily caffeine dose, which is terrible news for coffee aficionados. Prices have risen since the world’s biggest producer, Brazil, has been hit by the worst drought in almost a century, causing crop devastation.
In New York trade last month, coffee futures touched a four-and-a-half-year high. Since then, they’ve dropped to around $1.50 per pound, but that’s still a considerable rise over last year.
Roasters and coffee purchasers generally have contracts with suppliers that protect them for three to nine months from price fluctuation. When those contracts expire, however, many roasters are expected to sign new contracts at significantly higher rates, which may be passed on to customers.
