Coffee, the gold of 2024 in the markets
Last Update: 25/12/2024
During 2024, the price of coffee rose significantly, achieving a higher return than gold.
In 2024, coffee futures showed significant price increases, mainly for Arabica and Robusta varieties. Several factors underlie these rises, but the main one remains related to the extreme weather events that have insisted on many producing countries.
Extreme events such as drought in Vietnam (the main Robusta producer) and torrential rains in Brazil have compromised yields, reducing global supply. This was compounded by logistical issues and the usual speculative drive.
Looking at the strength relationship between coffee futures and gold futures, one can see that the one-year trend is positive, with a strong re-acceleration from the beginning of November. Thus, it can be said that coffee has shown greater strength than gold, and considering the bullion’s excellent year, we get an idea of how much coffee prices have risen over the course of 2024.
While the overall commodities basket has not brought home a good year so far, the performance of gold and coffee is clearly visible in the chart above, with coffee’s performance beating gold for much of 2024.
