The cost of coffee could drop below $2/lb by the end of this year

Coffee (Arabica) could fall below US$2/lb by the end of 2022 as South America sees favorable weather this season and weaker demand is expected due to Russian aggression against Ukraine. This opinion was expressed by the head of the agricultural market research department at Rabobank, Carlos Mera. In connection with this forecast, according to MarketWatch, quotes are expected to fall by 12% from the current $2.27 per pound. Previously, a 3.5% rise was expected, but since the full-scale war unleashed by Russia against Ukraine, coffee supplies to Ukraine from EU countries have fallen by 70%, and the reduction in coffee supplies to Russia could reach more than 25%.