Coffee Service

Coffee reserves continue downward trend, driving up prices

Image provided by iStock.

February 8, 2022

Coffee prices won't be falling in the near future as the amount held in reserve has reached a record low, according to a Bloomberg report.

High-end arabica beans inventory reached the lowest level since February 2000, totaling 1.078 million bags (about 143 million pounds), according to the ICE Futures U.S. exchange.

Reserves certified by ICE have declined since September in response to rising shipping costs and unfavorable weather that undermined production in Brazil, the largest grower and exporter.

Falling inventories signifies that demand has been surpassing supply, which drives higher prices.