The cost of “Arabica” has been declining over the recent months. Experts say that this is not the end of the bearish trend. They believe that Arabica prices will hit the bottom in 2013. The price decline will be mainly caused by optimistic forecasts for the coffee production in Columbian and Brazil.
According to analysts’ estimation, the price of Arabica, the premium-quality sort of coffee, will near 147,93 cents per pound in Q1 2013, which is below last year’s readings by 40,21 cents.
The price is expected to recover up to 154,66 cents per pound in Q2 2013. In Q3 2013, the price is expected to reach 156,84 cents, which is below last year’s readings by 43.31 cents. In Q4 2013, they expect the price to be around 152,95 cents per pound.
According to the USDA, the global production of coffee is expected to reach 148.6 million bushels this year. This is a 1.35 decline (y/y).
