Coffee Arabica Nears Decade High Amidst Supply Setbacks

<p><a href="https://admiralmarkets.com/analytics/traders-blog/coffee-arabica-november-2021"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/articles/EN_-_Fundamental_analysis-12.jpg" data- data- data-alt="Trading News 17 November" data-height="376" data-width="800"><source type="image/webp" media="(min-width: 640px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/720x,webp/fxmedia.s3.amazonaws.com/articles/EN_-_Fundamental_analysis-12.jpg"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/375x,webp/fxmedia.s3.amazonaws.com/articles/EN_-_Fundamental_analysis-12.jpg"></source></picture></a></p><p>So much has been written recently about the global energy crisis and the soaring price of crude oil, that it has overshadowed the rising price of another commodity, which may have gone unnoticed by many, even though, chances are, most of you reading will have used it at least once today already. </p><p>That commodity is coffee and its arabica variety is currently trading at an almost ten-year high, rising more than 88% since the beginning of April. </p><p>So, what exactly is happening with coffee arabica prices?  </p><p>The recent rise in coffee prices is mainly down to a drop in global supply, which, itself, is the result of a combination of several factors. </p><p>Brazil, which is the largest source of arabica in the world, had its coffee production significantly hampered this year due to adverse weather conditions in the form of drought and frost. </p><p>This problem has been further exacerbated by recent truck driver strikes in Brazil, delaying the delivery of the beans that they <em>have </em>been able to produce. </p><p>Naturally, there are other countries which produce arabica. Take, for example, Colombia, who are the second largest arabica producer in the world. However, Colombia has been battling with its own weather woes, with this year’s crop being severely threatened by excessive rains. </p><p>Between them, Colombia and Brazil are responsible for more than half the world’s arabica, meaning that any issues with their production significantly impacts global supply. </p><p>If this wasn’t enough, fertiliser prices have soared this year – significantly increasing farmers’ production costs, whilst Covid-19 has caused a global shortage of shipping containers, hindering exports and increasing their cost. </p><p>Taking all this into account – the drop in global supply and the rising costs of production and distribution – coffee arabica prices are likely to remain high for the time being and it would not be surprising if they increase even further in the coming weeks. </p><figure><a href="https://admiralmarkets.com/analytics/traders-blog/coffee-arabica-november-2021"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/articles/Arabica_Daily_Chart.png" data- data- data-alt="Arabica Daily Chart" data-height="573" data-width="1324"><source type="image/webp" media="(min-width: 640px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/720x,webp/fxmedia.s3.amazonaws.com/articles/Arabica_Daily_Chart.png"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/375x,webp/fxmedia.s3.amazonaws.com/articles/Arabica_Daily_Chart.png"></source></picture></a>
<figcaption><em>Depicted: Admirals <a href="https://admiralmarkets.com/trading-platforms/metatrader-5" target="_blank" rel="noopener">MetaTrader 5</a> – Coffee Arabica Daily Chart. Date Range: 13 August 2020 – 17 November 2021. Date Captured: 18 November 2021. Past performance is not a reliable indicator of future results. </em></figcaption>
</figure><p> </p><figure><a href="https://admiralmarkets.com/analytics/traders-blog/coffee-arabica-november-2021"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/articles/Arabica_Weekly_Chart-5.png" data- data- data-alt="Arabica Weekly Chart" data-height="574" data-width="1333"><source type="image/webp" media="(min-width: 640px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/720x,webp/fxmedia.s3.amazonaws.com/articles/Arabica_Weekly_Chart-5.png"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/375x,webp/fxmedia.s3.amazonaws.com/articles/Arabica_Weekly_Chart-5.png"></source></picture></a>
<figcaption><em>Depicted: Admirals MetaTrader 5 – Coffee Arabica Weekly Chart. Date Range: 12 April 2009 – 17 November 2021. Date Captured: 18 November 2021. Past performance is not a reliable indicator of future results. </em></figcaption>
</figure><p> </p><p>With a Trade.MT5 account from Admirals, you can trade Contracts for Difference (CFDs) on coffee arabica, coffee robusta, crude oil, gold and many other commodities! CFDs allow traders to attempt to profit from both rising and falling prices, whilst also benefiting from the use of leverage. Click the banner below to open an account today:</p><p><em><div><div><span>Trade Commodity CFDs</span><p>Trade CFDs on Crude Oil, Coffee, Gold, Silver and More!</p><a target="_blank" href="https://admiralmarkets.com/start-trading">START TRADING</a></div><div><a target="_blank" href="https://admiralmarkets.com/start-trading"><a href="https://admiralmarkets.com/analytics/traders-blog/coffee-arabica-november-2021"><picture class="lozad" data-iesrc="https://dce5jani6jm7e.cloudfront.net/data/education/articles/commodities.svg" data- data- data-alt="Trade Commodity CFDs" data-height="" data-width=""><source type="image/webp" media="(min-width: 640px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/720x,webp/dce5jani6jm7e.cloudfront.net/data/education/articles/commodities.svg"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/375x,webp/dce5jani6jm7e.cloudfront.net/data/education/articles/commodities.svg"></source></picture></a></a></div></div> </em></p><p><b><em>INFORMATION ABOUT ANALYTICAL MATERIALS:  </em></b></p><p><em>The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:  </em></p><ul>
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