Fundamental Factors Affecting Prices: Heavy rain, Frost, disastors like volkanic erruption, war, labor strike,etc.

Non - Fundamental Factors: A shift in world trading like a movement from coffee trading towards oil trading by investors (Stock market)

Word supply situation is one of  the major Fundamental Factors  affecting coffee prices in international market, since price is a function of demand and supply. The fact that about 40% of world total production is contributed by Brazil and Colombia signifies that production and supply situation of these countries has a direct influence on international coffee prices.

The second important factor for coffee pricing is the demand situation of major importing countries in the world. Generally speaking, coffee Arabica fetches higher price than Robusta coffee simply because of its recognized higher quality in the world. There are also significant  price variations among aracbica. According to the study reports of the past few years, Brazilian Arabica fetches prices similar to the world average prices for coffee Arabica. On the other hand, Colombia Arabica is greater by 36%, and that of Ethiopian Arabica by 30%, and other countries' Arabica by 27% than the world average price for Arabica coffee.

Besides, some international organizations like World bank would predict that the increase in coffee prices is a natural phenomena, as the world coffee price may relate to the general inflation situation as well as the ever increase in annual prices of oils and its resultant.

35,10,0,50,1
25,600,60,1,3000,5000,25,800
90,150,1,50,12,30,50,1,70,12,1,50,1,1,1,5000
0,2,1,0,2,40,15,5,2,1,0,20,0,1
Yidnekachew
Yidnekachew
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