Lavazza: Coffee prices expected to remain high, volatility will persist

Chairman Giuseppe Lavazza said in an interview in London on Wednesday: "The market needs to stabilize before price cuts can be considered." He added that at least two strong harvest seasons and a significant rebuild of global inventories are needed to ease supply tightness, making it unlikely that prices will decline in the next two years. New York Arabica coffee futures saw their biggest intraday gain in 26 years on Monday but gave back most of those gains the following day. Prices fluctuated again on Wednesday, suggesting continued volatility as market participants weigh expectations of a record harvest in top producer Brazil against concerns over the impact of El Niño. Lavazza stated: "I believe we are in a period of prolonged instability and uncertainty. Volatility has become the new normal."