Consumer coffee may see their high morning prices

Americans can expect their price A daily cup of Java To extend its portfolio a little more than usual as a method of factors that affect the global supply chain that leads to high prices.

In February, the prices of Arabic coffee brought the previous record at $ 4.30 per pound – twice the price last year – According to futures contracts It was circulated in New York.

Now, the coffee toasts who have seized their chances in the futures markets feel burns, and they can pass the price for customers. Traditionally, companies in the futures market invest in the hope of securing a lower cost, but coffee prices continue to climb.

In February 2025, the average price of ground grilled coffee increased to a height of $ 7.25 per pound, According to government data.

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As for the industry, most of its revenues come from the products consumed at home, the idea that customers are less likely to search for a coffee alternative that allows companies to have more flexibility in their prices while compensating the cost to the consumer.

“At the end of the day, we must be responsible,” Mark Smoker, CEO of JM SMUCKER He said in the November profit call. “We want to make sure that we are able to pass cost changes up and down, and we intend to do so.”

JM SMUCKER did not immediately respond to the Fox Business request for comment.

Many factors – such as customs tariffs, weather and crop growth – tend to significant effects on coffee prices. In 2024, the world’s largest coffee producers saw a flow of climate -related effects on their crops.

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Green coffee pill exports from Brazil fell by 11.3 % in December after a season of severe dryness and frost, According to a report From the International Coffee Organization (ICO). Vietnam exports also decreased by 39.5 % after the country witnessed an unreasonable dryness in October.

“I would like to highlight that the coffee market today is very speculative, because we have not yet reached the harvest season.” “Many of the fluctuations we see really linked to financial speculation. With our entry into harvest, we will have more Intel regarding what it seems.”

Asia and Oceania coffee exports also witnessed a significant decrease in 2024, with a decrease of 31.2 % by ICO.

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Geopolitical tensions between Israel and Hamas, and an increase in the reported attacks throughout the Red Sea, led to a delay in shipping that affects a vital marine road representing 30 % of international container shipments, according to what it said. Report 2024 From the World Bank.

Additional charging times through the Suez Canal have also forced coffee production countries, such as Asia, to increase their cost, According to a report By ICO.

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In addition, and US Department of Agriculture It has found that China has expanded its consumption worldwide, as Chinese consumers are expected to buy 6.3 million bags of coffee by the end of 2025-a national record for the world’s most populous countries that can put pressure on a really thin supply chain.

Smoker said: “We will continue to withdraw the arms available to us, whether this trade or it is clear that it is a cost reduction to try to ensure that we do not reject the price too much and (we are) are very keen on what consumers can bear.” “But we will be responsible and we will continue to manage coffee business the way we always have.”