The price of Arabica coffee futures surged to $3.22 per pound on November 28, marking the highest level in over 50 years. The increase follows concerns about supply shortages due to severe drought conditions in Brazil, the world’s largest coffee producer.
Arabica coffee prices have risen more than 3% in New York trading, with the current price reaching its highest point since at least 1972. However, the all-time record for Arabica coffee prices was set in 1977 at $3.375 per pound.
The ongoing drought in Brazil has raised alarm over the 2025/2026 coffee harvest, with experts fearing lower yields. This is compounded by a number of geopolitical factors. Disruptions to shipping routes through the Red Sea, potential U.S. tariffs, and the European Union’s future decisions on deforestation are all contributing to the rise in prices.
These supply issues are creating uncertainty in the global coffee market, driving up the cost of one of the world’s most beloved beverages.
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