Coffee has spent much of this year in the doldrums, as a combination of falling demand (from COVID-related café’ closures) and a weak Brazilian Real currency kept java on the ropes. Those negatives are slowly dissolving, however, as the supply picture is starting to brighten. Here we’ll discuss the growing number of fundamental factors which favor a coffee price turnaround by later this summer.
Although supply has been very spotting in recent months, the demand for coffee has been the major factor holding back prices and keeping the bulls at bay. Coffee shop closures around the world resulting from coronavirus lockdowns have had some impact on demand, as has the resulting loss of income.