Arabica coffee futures are surging on signs that a global arabica supply deficit is broadening, according to a Bloomberg report.
Citing analysts, Bloomberg reports “the world will be short 7.5 million bags for this season’s crop cycle, following an outlook for reduced output in top grower Brazil.”
Frost is a threat to Brazilian coffee groves between June and August.
Luxury coffee beans face a “serious deficit threat in the coming marketing year,” analysts told Bloomberg.
May’s arabica coffee rose 4.1% to $1.2715 a pound in New York, the biggest gain since Feb. 22, Bloomberg said. The increase is among the biggest on the Bloomberg Commodity Index, which also includes rising crude oil, cotton, sugar and cocoa.
Arabica coffee is used in cappuccinos, lattes and flat whites made at Starbucks and other gourmet coffeehouses.