"Coffee" fell by -28% per year and continues down

The price of "coffee" dropped to the lowest minimum within the last 18 months. For one year, according to the Financial Times, the drop was -28%. The main factors are expectations for a strong harvest and the devaluation of the Brazilian currency. Arabica futures (September) on ICE Futures US traded around $ 1.1655 per pound (minimum of 29 January 2014).

Analysis by Bloomberg shows that the weather forecast for Latin America is very positive about production prospects of "coffee", as in Brazil and Colombia - the second producer.

Brazil is a big exporter of robusta too. According to ICE Futures US, futures prices for this variety also fell niarly 22.6%, to $ 1,557 per tonne. Heavily influenced complete collapse of the Brazilian real, which is exchanged against the USD on 12-year minimum (3,87587 BRL / 1 USD).

Although the International Coffee Organization predicts long-term demand growth - with nearly 25% by 2020, the forecast now has no lasting impact on the trend.

The price fall in the international markets is typical for most products. Wheat reached -23%, sugar -22%, orange juice -10%, dairy products-9%, etc. The common causes are high exchange quotations in USD, the decline in US exports and China's economic problems, deepening decline in Chinese imports and the high levels of available stocks. As an example, stocks of grain in the world is estimated around 447 million tons., a record for the period of last 29 years.