Coffee
Coffee prices on the world market have dropped significantly in the past 5 years, from roughly $2.70 to $1.20 in that time, due to good harvests and the weakening Brazilian currency - but the cost of your morning cappuccino will be unlikely to change. This is in part due to the weakness of the British pound and also that the price of the coffee beans in your coffee is only a small percentage of the overall cost. The majority of investors expect the price to continue to fall for 3 reasons: an increase of available crops, the continuing fall of the Brazilian real and trade tensions between the US and China.
Edward Starling
Economics Journalist
Global Market report
Coffee
Coffee prices on the world market have dropped significantly in the past 5 years, from roughly $2.70 to $1.20 in that time, due to good harvests and the weakening Brazilian currency - but the cost of your morning cappuccino will be unlikely to change. This is in part due to the weakness of the British pound and also that the price of the coffee beans in your coffee is only a small percentage of the overall cost. The majority of investors expect the price to continue to fall for 3 reasons: an increase of available crops, the continuing fall of the Brazilian real and trade tensions between the US and China.
Natural Gas
Over the past decade our British North Sea Natural Gas supply has dwindled and the last harsh winter bringing the ‘Beast from the East’ depleted gas stores held in the UK. Supplies for the UK now come predominantly from Norway, Qatar and Russia and the UK is therefore at the mercy of any increasing costs. Many producers also favour selling to Asian countries where the price can be up to a quarter higher than in Europe. Prices for gas have increased by 50% in the past year and are set to rise even further if we have a repeat of the last winter weather.
Coffee prices on the world market have dropped significantly in the past 5 years, from roughly $2.70 to $1.20 in that time, due to good harvests and the weakening Brazilian currency - but the cost of your morning cappuccino will be unlikely to change. This is in part due to the weakness of the British pound and also that the price of the coffee beans in your coffee is only a small percentage of the overall cost. The majority of investors expect the price to continue to fall for 3 reasons: an increase of available crops, the continuing fall of the Brazilian real and trade tensions between the US and China.
Over the past decade our British North Sea Natural Gas supply has dwindled and the last harsh winter bringing the ‘Beast from the East’ depleted gas stores held in the UK. Supplies for the UK now come predominantly from Norway, Qatar and Russia and the UK is therefore at the mercy of any increasing costs. Many producers also favour selling to Asian countries where the price can be up to a quarter higher than in Europe. Prices for gas have increased by 50% in the past year and are set to rise even further if we have a repeat of the last winter weather.
Coffee
Natural Gas
Global Market Report