Coffee prices have surged to unprecedented levels in New York, fueled by growing worries about a global supply deficit, positioning it as one of the year’s most in-demand commodities.

Futures for arabica coffee, favored in specialty brews, have skyrocketed by 80% this year due to crop difficulties in key producing areas, posing a threat to consumers’ finances. On Tuesday, prices rose by as much as 3.5%, hitting levels not reached since 1972, exceeding a peak from that era that resulted from the catastrophic Black Frost event which ravaged Brazilian coffee plantations.

Fears regarding future supplies from Brazil, the leading producer, have intensified following a severe drought earlier this year. Furthermore, concerns about production problems in Vietnam—the top supplier of robusta beans—have emerged, as key coffee-growing regions faced dryness during the growing season, followed by heavy rainfall at the onset of the harvest.

This remarkable increase in prices poses a risk of added costs for roasters and cafes, which may be compelled to transfer these expenses onto consumers. Under mounting pressure, sellers have already raised their prices and removed discounts to protect their profit margins, cautioning that further increases could be forthcoming.

Currently, arabica futures are trading up 3.3% at $3.411 per pound in New York. Prices have surpassed the previous highest point recorded in 1977, a challenging period for the market following the destructive frost in Brazil in 1975 that influenced subsequent production.

The rise in coffee prices sharply contrasts with the broader wholesale food cost landscape, which remains substantially below its all-time high reached in early 2022 amid the fallout from Russia’s invasion of Ukraine. Nevertheless, certain soft commodities are among the year’s top-performing raw materials.

Cocoa prices have surged, reaching a record in April in New York, spurred by poor harvests in West Africa that resulted in a significant global shortage, disrupting the market. Additionally, orange juice futures are approaching historic highs due to droughts and diseases impacting trees in Brazil, the top producer. Florida, the leading state for orange juice production in the US, has also seen declines, with prices supported by hurricane-related damages.

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