It has been less that one week since we reported that the price of coffee futures on the commodities market eclipsed the $4 per pound mark for the first time in its history. The reasons for the increase are myriad: the threat of tariffs, low supply, decreased output, climate change, etc. Since publishing that article, the price of coffee has continued to shoot up and currently sits over $4.30, over a 7% increase during that time. The reason for this—and I hate to say I told you so—is panic buying.
As reported by Reuters, Arabica coffee futures have reached record highs for 13 straight days, with traders “panic buying” due to “reports of a dry, hot weather system forming over Brazil’s coffee areas.” The article notes that prices will continue to rise unless Brazil or Vietnam have a bumper crop, which isn’t expected until August of 2026, or demand goes down due to the price hikes.
Complicating matters further are Brazilian producers, per Reuters, some of whom have shown they are wiling to sit on their unsold crop while the price continues to rise. Around 85% of their coffee has been sold already, but they are holding onto the remaining 15%.
Still, not all traders believe the increase will continue indefinitely, some saying that the price hike has “become self-perpetuating and out of sync with fundamentals.” There is speculation that the 2025 crop may exceed 2024’s, but even if it doesn’t, it may still be substantial enough to stem the tide in the interim.
Meanwhile, at the other end of the coffee spectrum, the Dubai Multi Commodities Centre (DMCC) Specialty Coffee Auction at World of Coffee Dubai broke the record for highest per-pound price fetched for a coffee at $10,020 per kilo ($4,546 per pound) for a Gesha from Panama’s Finca Sophia as well as national record prices for coffee produced in America and Bolivia.
Zac Cadwalader is the managing editor at Sprudge Media Network and a staff writer based in Dallas. Read more Zac Cadwalader on Sprudge.
