Arabica-coffee prices reached their highest level in 2½ years on Monday, after projections for more dry weather in Brazil sowed worries about lackluster future harvests, the Wall Street Journal reports.
Arabica coffee ordered for delivery in December ended on Monday at $2.2080 a pound on the ICE Futures U.S. exchange — the highest price since February 2012, WSJ says. A commodities strategist betting on the futures market also told WSJ he expects coffee-trading prices to rise from here, to $2 to $3 a pound next year.
For cup-of-joe consumers, though, the effects will not be immediate. WSJ reports that Starbucks has already fixed prices with suppliers to meet its needs in 2015, though prices for 2016 are still in the works.
The recent coffee harvest in Brazil was the smallest in three years and follows Brazil’s worst drought in decades. Brazil is the world’s biggest exporter of coffee beans, though the largest importer to the U.S. market — where Americans spend about $40 billion a year on coffee — is Mexico, the U.S. National Coffee Association says.