Will coffee prices rise again? The largest supplier of budget coffee has been promised problems 0 11

Vietnam, the world's largest supplier of budget robusta coffee, may face problems due to the approaching powerful typhoon "Kalmagei". This was reported by Bloomberg.

After hitting the Philippines, the typhoon is rapidly approaching the borders of Vietnam. Wind speeds at the epicenter of the disaster (in the waters of the South China Sea) reached 213 kilometers per hour at its peak. If the bad weather affects Vietnam, the robusta harvest in the country may decrease, and the quality of the beans may deteriorate due to damage to the plants, experts warn.

Local planters began harvesting in October. However, the risks of heavy rains in the Central Highlands, one of the key regions for robusta harvesting, could significantly erode the soil and damage the roots of the plants. In the worst-case scenario, warned meteorologist Nguyen Ngoc from the Dak Lak Hydrometeorological Department, a mass fall of coffee trees should be expected.

All of this could ultimately thwart Vietnamese farmers' plans to harvest the largest amount of beans in the last four years. In this scenario, global futures for robusta supplies, whose beans are used for making instant coffee and espresso, could start to rise significantly, predicted Darren Stetzel, senior vice president of StoneX for agriculture in Asia. "Even minor losses could rekindle concerns about supply stability," the analyst noted.

Global prices for robusta began to rise in October. The budget coffee variety has become one of the most expensive items on the agricultural product list, with a price increase of 7.3 percent.