So what's the latest on Arabica
Apr 22, 2025
So word on the street, or the coffee futures market if you prefer, is that we're still not sure how this year will pan out. We have a few extra variables thanks to US trade policy adding more uncertainty.
There's been mixed reports on this year's harvest which could be a good one but it's still a bit too early to tell. Short term prices are up but we're hopeful supply will improve. We'll have a better idea in the next month or so.
Global demand for the quality Arabica coffee has also been strong with the home market really hitting it's stride. This will continue to add pressure on pricing as more people want the good stuff.
So that leaves us with trade disruption and currency fluctuations. It looks like the US dollar will probably weaken through the rest of the year. As coffee is purchased in dollars this might help. This depends a little on the big producer countries such as Brazil who's currency has been strong although Europe and Asia might get the benefit of more supply if the US imposes more tariffs on Brazil and Colombia. They will simply trade with more receptive markets.
In the short term we have the ride the wave of fluctuating pricing with another small increase in wholesale pricing. We'll work hard at minimising any increase to our customers. Here's hoping the market settles and we can just get on with enjoying our favourite coffees.