Cepea, 27/12/2024 – 2024 was marked by high robusta and arabica coffee prices – domestic values for both varieties more than doubled during the year. Unfavorable weather conditions (drought and heat) through much of the year, a lower-than-expected harvest in Brazil – which reduced stocks – and lower output from Vietnam were among the factors that drove up bean prices. For robusta, the CEPEA/ESALQ index repeatedly set fresh real records for the Cepea historical series, which began in November 2001 – the monthly average for this index rose from around R$ 740/60 kg bag in December/23 to around R$ 1.800/bag in December/24. As for arabica, the CEPEA/ESALQ index reached its highest real level since 1997 – in one year, the average for this index jumped from around R$ 970/bag to R$ 2.000/bag. Overall, the standout was the rally in robusta – prices for the variety rose so much that they traded above arabica prices between late August and early September. Robusta coffee prices had already started 2024 on a significant uptrend. Strong foreign demand for Brazilian robusta, which had been observed since the end of 2023, remained firm in the first quarter and through practically the entire year of 2024. Attacks on commercial vessels in the Red Sea disrupted the entry of Vietnamese coffee into Europe, and this shifted foreign buyers toward Brazil. Still in the early months of the year, while demand remained strong, wetter weather in Brazil favored the crops and generated good expectations for the 2024/25 harvest. However, after April, it practically stopped raining in the producing regions, which disrupted the season's final development. As a result, bean yields fell short of expectations in much of the market. Source: Cepea (www.cepea.esalq.usp.br)