Global coffee stockpiles hit lowest level since 1999

Coffee prices have climbed close to $3.50 per pound, as stockpiles of arabica coffee have fallen to their lowest level since 1999. These stockpiles are held in certified exchange warehouses, and traders use them to settle futures contracts when they expire. When stockpiles are very low, prices become harder to control. Global coffee production is now growing after years of shortages, but experts say this may not be enough to calm the market. The new supply is going mostly into private storage, not exchange warehouses. Exchange warehouse stocks are what traders need to keep prices stable. Some traders may also have to buy back futures contracts if prices rise, which could push prices even higher.