Investor interest has raised green coffee prices

Green coffee prices have rocketed during the summer. In the middle of June the NYC price jumped from 130–135 UScent/lb to 170 UScent/lb and is now on its highest level since 12 years. High green coffee prices will also affect consumer prices early this autumn.
Gustav Paulig Ltd’s Purchasing Director Katariina Aho sees several factors behind the price increase. Besides green coffee supply and crop forecasts, investor and fund speculation steers price development more and more. Also the strengthening US dollar is generating price pressure.
- In the middle of June funds and investors started to invest substantial amounts in green coffee. In addition to that, supply problems of coffees have, together with the all over price level, raised remarkably the prices of single coffee qualities. For example, the Central American crop was sold out already during the first third of this year and the availability of Colombian coffees is weak already for the second year due to small crops. Even the biggest producer country Brazil has not been able to respond to the demand - new crop coffees start to come to the market just now in August.
Predicting the development of green coffee price is challenging. If coffee continues to be an interesting investment, the price level may stay high for a long time. The soon available Brazilian crop is big and may have a levelling effect. On the other hand, the scarcity of supply of Central American and Colombian high quality coffees will keep their prices high also next year. Both are essential taste components in our blends, Aho states.
More information
Paulig Coffee Division, Purchasing Director Katariina Aho, tel +358 9 3198 234 or mobile +358 40 702 4220
Background information on coffee:
•Coffee is one of the most traded commodities in world trade coming second to oil. Coffee is traded on major futures and commodity exchanges, most importantly in New York (arabica coffees) and London (robusta coffees).
•Most coffees are blended from various origin coffee qualities, that each have their own special character. Each Paulig coffee variety has its own, carefully considered taste profile for the consumer who appreciates different flavours.
•Thanks to blending, the characteristics of various coffee brands remain the same from package to package and from year to year despite the fact that the characteristics of coffee, as natural produce, are affected among other things by the weather conditions and growing place.