DENVER -- Coffee future prices for coffee beans are rising, which could mean higher prices at the ‘pump’ for java drinkers.
Arabica beans accounted for 60 percent of the world’s 153.3 million bags of coffee output last year, with the rest lower-grade robusta used in instant coffees.
Brazil produced about half of last year’s Arabica crop. But the recent dry years in Brazil and disease which has hit beans, have all caused a bit of a shortage in production which in turn could cost you more for a cup of coffee.
“I am not sure how high a cup would have to cost to keep me from making my own or going for the buck cup at McDonald’s,” said Aaron Steinke, who was conducting business over one of his two cups of espresso at St. Mark’s Coffee House on 17th and Vine in Denver.
“If prices get to be like five or six buck a cup, then I may change my habit,” he says.
While prices will hold steady for now, the $80 billion U.S. industry will keep a close eye on how high beans will go.
Futures in New York jumped 85 percent this year to $2.053 a pound. By May, some predict futures may reach $3, the highest since 2011.
For now, most will continue to enjoy their coffee at a price point which doesn’t reflect any futures' hikes that could be passed on going forward.