Problems in global supply chains have pushed coffee prices to a seven-year high in New York as bad weather, transportation hurdles and rising fertilizer prices threaten to hurt supply, further worsening the picture, according to Bloomberg. .
March-era Arabica futures were found to be up 2.6% earlier today at $ 2,189 in New York, climbing to their highest level since October 2014. Prices have rallied more than 90% in the past year.
Brazil, the leading producer, is facing a decline in production due to drought and frost, while Colombia, the second largest producer, has been hit by heavy rains that are also threatening production.
Fluctuating fertilizer prices are further burdening farmers, while rising transport costs and a lack of container vessels are hampering export efforts.
The jump in futures threatens to lead to a sharp rise in prices in cafes and shops, giving new impetus to inflation. Some companies have already raised prices, according to Bloomberg. US inflation data released this week showed the biggest jump in prices in 31 years.
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