Coffee bean prices have plunged to their lowest levels in two years – but your caffeine fix is unlikely to cost you less.
The slump is caused by an expectation of record coffee harvests this year in Brazil, the world’s largest producer.
But when prices have fallen before, the cost of our lattes and cappuccinos actually went up at Starbucks and other High Street chains.
Earlier this month, the price of a bag of coffee beans on the international markets dropped to its lowest since 2016.
Coffee bean prices have plunged to their lowest levels in two years – but your caffeine fix is unlikely to cost you less
Hedge fund managers have pushed costs down even further, after betting that the value of coffee beans will fall.
Their pursuit of bumper profits may mean that smaller farmers are put out of business because many will fail to break even on their crop this year.
There has been a slight recovery in the price of beans in recent weeks but they are still 10 per cent cheaper than they were a year ago.
The price drop is more likely to boost profits for investors and coffee chains th