Coffee Falls Below $1 Again- Another Buying Opportunity

From: seekingalpha.com

The price of Arabica coffee futures on the Intercontinental Exchange had not traded below $1 per pound from 2006 through 2018. In 2018 and 2019, the soft commodity declined to the lowest level in over a decade. Increased global supplies and a decline in the value of the Brazilian real weighed on the price. Brazil is the world’s leading producer of coffee beans. In 2020, Brazilian production amounted to approximately 3,558,000 metric tons of coffee. The second-leading producing country was Vietnam, with 1,830,000 tons, almost half of Brazilian output. The other two production nations with over one-half million tons of production were Columbia and Indonesia, with 858,000 and 642,000 tons. One-third of the world’s coffee beans come from Brazil.

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