The 2023-2024 coffee crop is drawing to a close as the new business year begins on October 1, 2024. With the lower U.S. dollar interest rate, will the rising coffee prices reverse their trend? Rapid rise, shocking fall It is generally believed that coffee prices increase when the U.S. dollar interest rate falls, but this is not necessarily true. Since the Fed’s rate cut decision, prices on the two major coffee exchanges dropped on September 19 and 20. Before the Fed’s meeting on September 18, prices on the London Robusta Coffee Exchange and the New York Arabica Coffee Exchange had soared to extreme highs. The November 2024 robusta coffee futures price hit a historical high at US$5,486 per ton, while the December 2024 arabica futures price climbed to over US$5,992 per ton, marking a decade-plus high. On September 20, New York Exchange prices fell sharply to US$5,528 per ton, and the robusta coffee price dropped to US$5,008 per ton, closing at US$5,059 per ton with a fluctuation of US$300 between the day’s high and low. This significant volatility, especially the steep drop, startled traders. Despite this, the recent decline is negligible compared to the previous rises. Over the past 52 […]