The price of Arabica (high-quality) coffee has shot up by 60% since the start of 2014. That's due to a drought in Brazil, which accounts for a third of overall production. The driest January and February for 30 years will squeeze output.
Yet, the sharp rise in prices is an overreaction and should reverse before too long, reckons Commerzbank. Last year global production hit a 24-year high and demand has not kept pace, so stockpiles remain healthy.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
India is a new global powerhouse — should you invest?India’s growth rate has slowed recently, but there is still ample scope for investors to benefit from its development.
-
Rightmove: UK asking price growth slows ahead of stamp duty changesSellers are adjusting asking prices as it is now too late for buyers to beat the stamp duty deadline
-
Chart of the week: hogs high on swine feverCharts The number of pigs in China, around 450 million, is set to shrink by a third by the end of 2019 as swine flu rages – meanwhile, US pork sales to China have hit a record high.
-
Chart of the week: coffee comes off the boilCharts Coffee prices have tumbled to a 12-year low, thanks to a bumper crop in Brazil – the world’s largest producer – and a stronger US dollar.
-
Chart of the week: cheese – the first casualty of the trade warCharts US cheese prices have crumbled thanks to a glut – the block cheddar cheese benchmark price settled at around $1.54 a pound
-
Chart of the week: vanilla could soon be off the menuCharts Vanilla prices have rocketed to a record peak of more than $600 a kilo, after a cyclone in March dented supplies from Madagascar, which accounts for half of world output.
-
Chart of the week: “shrinkflation” hits the chocolate marketCharts Toblerone, Quality Street and Creme Eggs have all been hit by “shrinkflation”, with customers getting less for more after the price of cocoa butter soared – up 40% this year alone.
-
Chart of the week: bumper harvest hits truffle pricesCharts Heavy rains in the Tanaro river basin in Piedmont, northwest Italy, have led to a bumper harvest of Alba white truffles this year.
-
Chart of the week: the rise of the garlic-hoardersCharts The wholesale price of garlic in China, which accounts for more than 80% of the world’s exports, has risen since 2015 as heavy rains damaged crops. Garlic hoarders and speculators have propelled prices to multi-year highs.
-
Chart of the week: lobster prices are boiling overCharts Hipsters’ passion for lobster rolls has helped propel lobster prices to an 11-year high. Global lobster imports were 7% up year-on-year in the first quarter, with imports to the EU up 20%.
