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US wholesale coffee prices rising

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March 26, 2021

U.S. wholesale coffee prices are rising as supplies are shrinking due to a global shortage of shipping containers, according to a Bloomberg report. U.S. coffee stockpiles have fallen to a 6-year low despite Brazil's record crop, and a decline in output is expected due to a drought .

Food inflation could also be exacerbated as economies reopen.

Roasters are currently able to hold off on raising prices thanks to existing inventories, but stockpiles are sliding and a smaller Brazilian crop is expected, according to analysts.

Marex Spectron, a U.K. based financial consultancy, raised its estimate for a global coffee deficit to 10.7 million bags for 2021-22, versus an earlier projection of 8 million bags, on account of expected lower Brazilian arabica output.