Miscellaneous

For the Third Time… Coffee Prices Soar to Historic Levels, Reaching $3.77 per Pound

By Sama Marwan,

The price of coffee on the New York Stock Exchange has continued to rise, reaching $3.77 per pound on Saturday—a new increase within days after previously standing at $3.41 per pound. Meanwhile, the average sales price hit $3 million for a 125-kilogram shipment of dry coffee, an unprecedented figure.

According to the Mexican newspaper El Espectador, coffee prices have reached their highest historical levels in just a few days. Germán Bahamón, director of the National Federation of Coffee Growers, stated, “According to recent data, the price of a pound of coffee has increased by 95% over the past year, reaching historic levels.”

The coffee industry is facing multiple crises. The price of Arabica coffee futures contracts has surged to a record high following U.S. President Donald Trump’s threats to impose tariffs on Colombia, exacerbating trade uncertainty in a market already struggling with global supply shortages.

While the country’s external purchases increased in November, the negative trade balance nearly doubled.

Uncertainty surrounding U.S. trade policy has created tension in global markets and among key trading partners. The C contract price for coffee on the ICE exchange in New York has seen a significant surge.

President Donald Trump recently ordered his administration to impose tariffs and sanctions on Colombia after it refused to allow two U.S. military planes carrying deported migrants to land on its territory.

In addition to trade tensions, climate change is also playing a major role. Key coffee-producing regions, such as Brazil and Vietnam, are experiencing severe weather fluctuations, directly affecting crops and prices.

The trade tensions have coincided with a coffee harvest crisis in several major producing countries. According to a report by the U.S. Department of Agriculture, global coffee stocks for the 2024–2025 season are expected to drop to their lowest levels in 25 years. As a result, supply shortages have driven coffee prices steadily upward, reflecting persistent concerns about availability.

The year 2025 begins with bitter news for coffee and chocolate lovers worldwide. With coffee and cocoa prices continuing to rise, this trend is expected to persist throughout the year due to climate-related challenges, rising transportation costs, and increasing international demand amid shrinking stockpiles.

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