On May 3, when Arabica futures contract prices hit a 14-year high of $3 a pound, some analysts predicted prices could reach an unprecedented $4 a pound, as low world supplies of coffee beans left coffee buyers scrambling.
However, now forecasters warn that improving prospects for next year’s crop, which has already lowered the cost of beans by over 20%, could bring contract prices below $2 a pound. Concerns that frost could hurt production in Brazil, the world’s largest producer, have eroded, offsetting worries that global harvests haven’t kept pace with demand.
The bottom line? Coffee costs have risen and fallen dramatically over the last few months. It is uncertain at what level they will settle down.
Meanwhile, we think coffee offers a powerful, cost-effective source of caffeine and remains a bargain for people seeking better health and a better, happier life. (However, if you are truly strapped for cash, you can always try caffeine pills, which deliver the benefits of caffeine at a bargain price!)