what to watch for
Whether the Intercontinental Exchange, where Arabica coffee futures trade, raises its margin requirements, forcing futures traders to post more cash to maintain their positions. That could reverse a rally for coffee, while the potential shrinking of exchange-approved coffee could be a “major structural risk looming over the market,” StoneX warned.
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surprising fact
The average cost for a pound of coffee in the U.S. reached an all-time high in April, peaking at just over $9.72 before dropping slightly to $9.51 in May, according to Federal Reserve data.
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key background
Coffee prices have peaked in recent years as poor weather in major producing countries like Brazil and Vietnam tightened global supplies. Higher production costs have yet to cut into demand, StoneX said in a note earlier this month, as coffee consumption hit a record high this year. Analysts cited a report finding that coffee remained the most-consumed beverage in the U.S., with 66% of adults reporting they had consumed coffee the previous day, edging out bottled or tap water. The commodity has also been impacted by soaring inflation in recent years, with the average cost for a tub of coffee surging by 115% between June 2020 and April 2026, according to Forbes’ estimates.
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further reading
ForbesHere’s How A Typical Bag Of Groceries In 2020 Costs Over 50% More TodayBy Ty Roush