Global Exchanges Demonstrate Food Prices Growth… How Much Will Coffee Cost?

Market Leader informed

Experts of the Masterforex-V International Academy of Trading and Market Leader’s news agency continue following the growth dynamics of food prices and globally traded futures. In our earlier features, Prices for Bread and Other Foods Getting Higher in Russian Regions and Why and to What Levels Will Sugar Prices Grow in the Near Future? we gave a detailed description of the tendency that has recently been indicating an impetuous growth of prices for all everyday foodstuffs. Food giants break growth records of 2010 demonstrating the highest level of underlying sales in the 3rd quarter while practically all people of Russia, Ukraine, Moldova, Kazakhstan, Switzerland, Germany and other nations have personally felt its impact. All global news agencies take turns to report new record highs of food prices. The rapidly evolving market resulted in a higher demand for another product without which many lovers of this noble drink cannot imagine their day – coffee beans.

Let’s try and analyze what drove coffee prices to grow

The first reason for higher prices involves unfavorable weather conditions this year that have significantly reduced crops. So, Arabica beans reached their previous high, while Robusta doubled in price. Specialists draw attention to the fact that bad weather and frequent rains in Asia substantially slow down not only the harvesting, but also further processing of beans. Coffee is shipped to other countries from Central America, and foul weather serves as another obstacle for exports. Columbia is witnessing a more active fungal infection that affects annual picking of beans. Brazil’s production risks being significantly cut.

Futures for supply of Arabica grew by 4.25 cents to 2.01 dollars per pound in one New-York exchange. A bit earlier it went up to 2.035 dollars per pound. Experts claim that the price we have lately seen is the highest over the past few years.
It is expected that demand for Arabica coffee worldwide will most likely exceed supply by over 1 million bags this year while the deficit for Robusta beans will be over 1.5 million beans. Second grade coffee prices are going up because of natural disasters in Vietnam. Futures for this blend grew today by 53 dollars to USD 1,893 per ton. In the past the price crossed USD 1,910 per ton.

It should be noted that Robusta coffee beans are more frequently used for production of instant coffee. They are grown in Asia and Africa. Arabica is prepared primarily in Latin America. 1 bag contains 60 kg /132 pounds/.


Analysts of the Department for Market Sentiment Analysis within the Masterforex-V Trading Academy point out that coffee futures are now within an uptrend and have set a new historical high.

Investors should expect the trend to continue especially in the context of coffee deficit in the market and impact of natural conditions on the crops. A three-day growth supported by higher volumes shows ‘strength’ of the instrument. Buying should be started around the lower boundary of the channel, in the area of $190-196.

Lovers and true connoisseurs of coffee will be interested to find out some details of the most valuable and popular blends of this drink.

Arabica is the most widely spread and best coffee blend. Agreeable chocolate flavor with a slight sour touch. Robusta, on the other hand, is characterized by a more acute and bitter taste and has a large content of caffeine.

Noble Arabica

Born in Ethiopia, Arabica is the oldest and truly most popular blend in the world grown today with equal success in Brazil, Columbia, India, Equatorial Africa and Sumatra. Visually Arabica beans are oblong in shape, green in color with a light lengthwise groove. Its caffeine content is low at 1-1.7%. When ready, it has a soft taste, fascinating aroma, slight sour touch and chocolate flavor. In addition, Arabica is further divided into twelve types. The deservedly noblest and most expensive ones include:

• Excelso Kolumbia
• Costa-Rica Tarrazu, an invigorating drink with a flavor of nuts
• wild Arabica - Etiopia Djimah – has an unusual, peculiar and saturated taste with wine and fruit touches
• Arabica Nikaragua Superior is most suitable for espresso, has a natural cognac accent, a soft taste, medium strength with a powerful aroma
• Jamaica Blue Montain, Arabica’s most refined and expensive blend of prefect taste with fruit touches and a slight sour flavor.

Coffee that arrives in our markets is usually a combination of different blends mixed specially to give lovers of this noble drink the richness of taste and variety of aroma.

Expressive Robusta

Robusta dates back to the 19th century and is famous for its quick growth and fecundity. The blend is climatically sustainable. it is grown in Cameroon, Uganda and Vietnam. Its beans are much smaller, more oblong, have more pronounced and keen taste than those of Arabica. Its caffeine content is at 2-4%. There aren’t so many varieties. Best Robusta blends are grown in Uganda and Zatr and are exclusively suitable for cappuccino.
To satisfy gourmets’ taste addictions Robusta and Arabica beans are put together to produce a kaleidoscope of taste that even the most demanding coffee lover cannot resist. Guarana is added to coffee to improve the effect and perfect the drink. It can excite the body and mind and has a content similar to that of caffeine (5-6%), but a softer impact on the gastrointestinal tract.

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