Coffee Drinkers Shift to Whole Beans as Prices Soar

Source: Qahwa World / Lavazza Group
Author: Editorial Team
Date: July 21, 2026

Coffee Drinkers Shift to Whole Beans as Prices Soar

  • Consumers are buying less but better coffee as global prices remain elevated.
  • Whole bean demand surged 46% year-over-year, according to consumer data.
  • Home brewing equipment sales jumped: drip coffee makers up 66%, espresso machines up 50%.
  • Lavazza reported strong 2025 revenue of €3.9 billion, up 15.7%.
  • Lavazza plans to launch Tablì, a sustainable single-serve system using compressed coffee tablets.
  • Nielsen data shows whole bean sales outpacing overall coffee category across UK and Europe.
  • Price volatility is expected to persist, with no retail price cuts in sight.

Global coffee prices have remained elevated for four consecutive years. Consumers are adapting by buying less but better. This trend toward whole bean coffee and bean-to-cup machines represents a significant market shift.

Giuseppe Lavazza, Chairman of the Lavazza Group, called it the sector’s most important trend. “People are looking for beans,” he said. “They enjoy replicating the coffee shop experience at home. Maybe they prefer to consume a little less but of better quality.”

The Trend Emerged in 2024

This shift did not appear overnight. Early indicators were visible in 2024, well before the price peaks of 2025 intensified the movement. Pattern, a consumer demand analysis firm, reported whole bean coffee demand surged 46% year-over-year. This growth was accompanied by strong increases in home brewing equipment.

Drip coffee makers rose 66%. Espresso machines increased 50%. Accessories such as bean storage also grew 20%. The report highlighted a broader move toward serious at-home coffee preparation. Whole beans serve as the starting point for better freshness and flavor.

Multiple National Coffee Association surveys showed sustained high levels of at-home coffee consumption. Around 81% of past-day drinkers consumed coffee at home in some periods. Out-of-home consumption recovered post-pandemic, but the at-home habit remained strong. Consumers continued seeking premium experiences and better value.

2024 Early Indicators – Consumer Demand Growth
Category Growth
Whole bean coffee demand +46%
Drip coffee makers +66%
Espresso machines +50%
Bean storage accessories +20%

Current Reality: Price Surge Accelerates Change

Record-high coffee prices in 2025 pushed the trend into the mainstream. Poor harvests in Brazil and Vietnam drove the price surge. Climate change impacts, geopolitical disruptions, and financial speculation also contributed.

Nielsen data for the year to May 2026 shows the shift clearly. In the United Kingdom, whole-bean sales rose 20.3% by volume. This far outpaced the overall at-home coffee category, which grew just 2.8%. Value sales jumped 36.8%, while bean-to-cup machine sales increased 33.5%.

In Europe, France saw 35% growth by value. Italy recorded 33% growth. Germany, Europe’s largest coffee market, saw 31.2% growth. Whole beans have now surpassed traditional roast-and-ground coffee in volume in Germany.

In the United States, the shift was more modest but consistent. Whole-bean unit sales rose 3.2% over 52 weeks to June 2026. Meanwhile, pod sales fell 4.9% and ground coffee declined 3.9%.

Nielsen Data – Whole Bean Sales Growth (Year to May 2026)
Market Growth
United Kingdom (volume) +20.3%
United Kingdom (value) +36.8%
France (value) +35.0%
Italy (value) +33.0%
Germany (value) +31.2%
United States (unit sales) +3.2%

Why Prices Soared

The coffee market has faced four years of upheaval. Adverse weather and weak harvests in Brazil and Vietnam were key factors. Climate change impacts, including El Niño risks, added pressure. Geopolitical disruptions, higher shipping costs, and financial speculation in futures markets also played a role.

In the UK, at-home coffee prices rose another 6.3% in the year to May 2026. Roasters found it harder to manage costs by blending cheaper Robusta with Arabica. Both varieties hit record levels simultaneously.

Lavazza noted that futures prices have eased from 2025 peaks. However, the market remains too volatile for widespread retail price cuts. “We think there is not time to think about a possible cut in prices,” he said. “The possibility of another increase is not totally over.” At least two strong harvests in Brazil and Vietnam will be needed to rebuild global inventories.

Lavazza’s Performance and Strategic Response

Despite industry challenges, Lavazza reported strong 2025 results. Revenue reached €3.9 billion, up 15.7%. EBITDA rose 8.8% to €340 million. The company is innovating to stay ahead.

Lavazza plans to launch Tablì in the UK in September 2026. This is a single-serve system using compressed coffee tablets. It addresses waste and recycling concerns associated with plastic and aluminum pods. “Capsule is over,” Lavazza declared. “This is a new benchmark.”

Broader Implications and Future Outlook

Consumer behavior is evolving. Coffee remains recession-resistant. However, buyers are trading down in volume while trading up in quality and experience. The “less but better” philosophy reflects economic pressure and a desire for premium at-home rituals.

The pandemic-initiated home-brewing boom has become structural. Demand for whole beans rewards freshness, flavor complexity, and better value per cup. Persistent climate risks, cautious buying by roasters, and farmers holding stock in hope of higher prices continue to shape the market.

Volatility is now “the new constant,” according to Lavazza. Opportunities remain in premium home equipment, sustainable packaging innovations, and single-origin and specialty offerings.

“People are looking for beans and they enjoy maybe to replicate at home the experience of the coffee shop. Maybe they prefer to consume a little less but of better quality.”

— Giuseppe Lavazza, Chairman, Lavazza Group

Conclusion

What began as a noticeable trend in 2024 has evolved into a major market shift in 2026. Soaring prices amplified the movement. Consumers are not abandoning coffee. They are redefining how they enjoy it. As Lavazza observed, this represents a “fundamental transformation in terms of supply and demand.”

For roasters, retailers, and consumers alike, the message is clear. Quality, freshness, and thoughtful preparation are winning out in an era of higher costs and greater awareness.

Frequently Asked Questions

What is the “less but better” coffee trend?Consumers are buying less coffee in volume but choosing higher quality whole beans and premium home brewing equipment to replicate café experiences at home.

How much did whole bean demand surge?Whole bean coffee demand surged 46% year-over-year, according to consumer demand analysis from Pattern.

What are the key market data highlights?In the UK, whole-bean sales rose 20.3% by volume. France saw 35% value growth, Italy 33%, and Germany 31.2%.

Why are coffee prices so high?Poor harvests in Brazil and Vietnam, climate change, geopolitical disruptions, and financial speculation have driven prices to record levels.

What is Lavazza’s new Tablì product?Tablì is a single-serve system using compressed coffee tablets instead of plastic or aluminum pods, addressing waste and recycling concerns.

Will coffee prices come down soon?Lavazza says prices remain too volatile for retail cuts. At least two strong harvests in Brazil and Vietnam are needed to rebuild inventories.

Delays to Brazil’s Harvest Push Coffee Prices Higher

Source: Barchart / Rich Asplund
Author: Qahwa World
Date: July 20, 2026

Delays to Brazil’s Harvest Push Coffee Prices Higher

  • September arabica rose 1.33% and robusta gained 0.18% on Monday.
  • Brazil’s 2026/27 harvest is only 64% complete, behind last year’s 77% and the 70% average.
  • ICE robusta inventories climbed to a 3.75-month high of 4,239 lots.
  • Arabica inventories fell to a 2.25-year low of 329,870 bags.
  • Heavy rains in Brazil have disrupted fieldwork and may have lowered crop quality.
  • El Niño concerns continue to support prices with potential impacts on Brazil’s flowering.
  • Only 0.2 mm of rain fell in Minas Gerais last week, 20% of the historical average.

Coffee prices moved higher on Monday. September arabica closed up 4.25 cents, gaining 1.33%. September robusta closed up 7 points, a rise of 0.18%. The gains came amid delays in Brazil’s coffee harvest.

Safras & Mercado reported the harvest is 64% complete as of July 15. This compares with 77% at the same time last year. The five-year average stands at 70%. The slow pace continues to support prices.

Harvest Delays Drive Coffee Prices Higher

Brazil’s 2026/27 coffee harvest is progressing slowly. Heavy rains have disrupted fieldwork. These rains may have also lowered crop quality. Brazilian farmers are holding back on sales. They hope prices will rise further. They are also bracing for potential El Niño impacts.

On July 6, arabica soared to a 5.75-month high. On July 7, robusta also hit a 5.75-month high. However, prices have since whipsawed in a wide range. Trading conditions remain illiquid. This has led to volatile price moves.

Brazil Coffee Harvest Progress (as of July 15)
Period Completion
Current year (2026/27) 64%
Previous year (2025/26) 77%
Five-year average 70%

Margin Hikes Reduce Liquidity

ICE raised margin requirements for coffee futures recently. This action has dried up liquidity. Many commodity funds have closed their positions. The result has been excessive one-way price moves. Volatility has been amplified by the illiquid conditions.

This has created a challenging trading environment. Prices have moved sharply in both directions. Market participants should expect continued volatility in the near term.

Inventory Trends Support Prices

ICE coffee inventories have trended lower over the past three months. This is supportive for coffee prices. ICE arabica inventories fell to a 2.25-year low of 329,870 bags on Monday. Meanwhile, ICE robusta inventories fell to a 2-year low on May 15. However, they have since risen to a 3.75-month high of 4,239 lots on Monday.

ICE Coffee Inventory Levels
Category Latest Level Status
Arabica inventories 329,870 bags 2.25-year low
Robusta inventories (May 15) 3,631 lots 2-year low
Robusta inventories (current) 4,239 lots 3.75-month high

El Niño Concerns Support Prices

Concerns about an El Niño weather pattern are bullish for prices. Coffee trader Commercial warned that El Niño may delay rains in Brazil. This September and October is when tree flowering normally occurs. Any delay could hurt Brazil’s 2026/27 coffee crop.

On July 8, the US Climate Prediction Center issued a warning. The El Niño pattern that emerged across the equatorial Pacific last month will likely be one of the strongest in more than 75 years. This sets the stage for possible floods, droughts, and temperature fluctuations. These conditions could hinder coffee production in Asia and South America.

Somar Meteorologia reported on Monday that only 0.2 mm of rain fell in Minas Gerais in the week through July 19. This is Brazil’s biggest coffee-growing region. This represents only 20% of the historical average. The dry conditions add to market concerns.

Bearish Factors to Consider

Despite the bullish momentum, several bearish factors exist. Recent strength in Brazil’s coffee exports is negative for prices. Last Wednesday, Cecafe reported Brazil’s June green coffee exports jumped 14.4% year-on-year to 2.64 million bags.

Vietnam’s soaring coffee exports are also bearish for robusta prices. On July 3, Vietnam’s National Statistics Office reported coffee exports from January to June rose 7.3% year-on-year to 1.05 million metric tons. Vietnam’s 2025 coffee exports jumped 17.5% to 1.58 million metric tons. Production for 2025/26 is projected to climb 6% to a four-year high of 1.76 million metric tons.

The USDA’s Foreign Agriculture Service projected record global production. World coffee production in 2025/26 is forecast to increase 2% to a record 178.848 million bags. Arabica production is expected to decline 4.7% to 95.515 million bags. Robusta production is projected to rise 10.9% to 83.333 million bags.

Global Supply Forecasts (USDA)
Category Forecast Change
World coffee production 2025/26 178.848 million bags +2.0%
Arabica production 95.515 million bags -4.7%
Robusta production 83.333 million bags +10.9%
Brazil 2025/26 production 63 million bags -3.1%
Vietnam 2025/26 output 30.8 million bags +6.2%
Ending stocks 2025/26 20.148 million bags -5.4%

Technical Perspective

On June 9, arabica coffee fell to a 20.5-month nearest-futures low. Robusta slid to a 3.5-month low. This occurred amid an outlook for a bumper coffee crop in Brazil. However, prices have since recovered significantly. The market remains highly volatile with significant upside potential.

Frequently Asked Questions

How much did coffee prices rise on Monday?September arabica gained 1.33% and September robusta rose 0.18% on Monday, July 20.

What is the status of Brazil’s coffee harvest?Brazil’s 2026/27 harvest is 64% complete as of July 15, behind last year’s 77% and the 70% five-year average.

Why are ICE coffee inventories important?Low inventories reduce available supply and support higher prices. Arabica inventories recently hit a 2.25-year low.

How does El Niño affect coffee prices?El Niño can delay rainfall during Brazil’s critical flowering period in September-October, potentially reducing crop yields.

What was the rainfall in Minas Gerais last week?Only 0.2 mm of rain fell, representing just 20% of the historical average, raising concerns about dry conditions.

What is the global production forecast?USDA forecasts record global production of 178.848 million bags for 2025/26, with robusta up 10.9% and arabica down 4.7%.

AHA Says Five Cups of Coffee Daily Safe for Adults

Source: Qahwa World
Author: Qahwa World
Date: July 20, 2026

AHA Says Five Cups of Coffee Daily Safe for Adults

  • American Heart Association statement says up to five cups of coffee daily is safe for most adults.
  • Three to five 8-ounce cups (about 400 mg caffeine) linked to lower risk of heart disease and stroke.
  • The statement published in Circulation journal analyzed dozens of studies on coffee and heart health.
  • Coffee may help heart health through increased exercise, diuretic effects, and reduced inflammation.
  • Some decaf coffee studies also show benefits due to polyphenols acting as antioxidants.
  • Energy drinks contain higher caffeine levels and may pose health risks, researchers warn.
  • Sugar, syrups, and saturated-fat creamers can dilute or eliminate coffee’s benefits.

There is good news for coffee drinkers. Up to five cups of coffee daily are safe for most adults. The brew may even have benefits for heart health. This comes from a new scientific statement by the American Heart Association.

Drinking three to five 8-ounce cups daily is linked to lower health risks. These include heart disease, heart failure, stroke, and Type 2 diabetes. The statement was published Monday in the journal Circulation.

Mixed Research Gets Much-Needed Clarity

Research on coffee and caffeine has been very mixed. Some studies show benefits. Others show health risks. The new statement provides much-needed clarity.

Dr. Eugenia Gianos is a cardiologist at Northwell Health in New York. She was not involved in the statement. She noted that the public is confused. Many clinicians also do not know how to guide their patients. She added that it is great that coffee might even have benefits. “We could even be recommending soon that people have coffee,” she said.

What the Study Found

The statement’s authors analyzed dozens of studies. They looked at the impact of coffee and caffeine on heart health. Researchers came from the Harvard T.H. Chan School of Public Health. George Washington University and other institutions also participated.

Dr. Gregory M. Marcus is the statement’s lead author. He is a cardiologist at UC San Francisco. He said evidence for coffee’s safety and benefits has been building over time. Most studies are observational. They cannot prove cause and effect. However, there have been more randomized controlled trials in recent years. These show that coffee consumption can be beneficial for heart health.

Key Findings from AHA Coffee Statement
Finding Detail
Safe daily intake Up to five 8-ounce cups (approx. 400 mg caffeine)
Health benefits linked Lower risk of heart disease, stroke, heart failure, Type 2 diabetes
Optimal range Two to four cups daily
Decaf benefits Also linked to lower diabetes and heart disease risk
Warning Sugar, syrups, creamers dilute benefits
Energy drinks Higher caffeine, potential health risks

Why Coffee Might Help the Heart

Scientists are still studying why caffeine might help the heart. People tend to exercise more on days they drink caffeinated coffee. Coffee acts as a diuretic and can lower blood pressure. Caffeine also blocks a substance that causes atrial fibrillation. This arrhythmia can lead to strokes.

Coffee contains other beneficial substances. These include polyphenols that act as antioxidants. They may reduce inflammation. This could explain why decaf coffee is also linked to lower risks of Type 2 diabetes and heart disease in some studies.

The Sweet Spot for Coffee Consumption

Research suggests the sweet spot for caffeinated coffee is two to four cups daily. This amount is enough to have a biological effect. It is not so much that it reaches toxic levels.

People have different responses to caffeine. Genetics and consumption habits play a role. “We all metabolize caffeine at different speeds,” Marcus said.

What to Avoid

The benefits of coffee can be diluted or eliminated by additives. Sugar, syrups, and creamers with saturated fat are problematic. The statement advises caution with these additions.

The AHA statement also examined other caffeine sources. Energy drinks often contain much higher caffeine levels than coffee. Some research has found they can lead to health problems. These include irregular heartbeats and high blood pressure. Marcus advises people to avoid energy drinks.

“Not only is the lay public confused about this topic, but many clinicians out there don’t know how to guide their patients. It is great that a drink so many people enjoy daily might even have benefits. We could even be recommending soon that people have coffee.”

— Dr. Eugenia Gianos, Northwell Health

“We all metabolize caffeine at different speeds.”

— Dr. Gregory M. Marcus, UC San Francisco

Implications for Public Health

The AHA statement offers clear guidance for consumers and clinicians. It suggests that moderate coffee consumption can be part of a heart-healthy lifestyle. The evidence supports coffee’s safety and potential benefits. However, individual responses vary. People should be mindful of additions like sugar and cream. Energy drinks should be avoided due to higher risks.

Frequently Asked Questions

Is it safe to drink five cups of coffee daily?Yes, according to the American Heart Association. Up to five 8-ounce cups daily (about 400 mg caffeine) are safe for most adults.

What are the health benefits of coffee?Moderate coffee consumption is linked to lower risk of heart disease, heart failure, stroke, and Type 2 diabetes.

What is the optimal number of cups per day?Research suggests the sweet spot is generally between two and four cups daily for cardiovascular benefits.

Is decaf coffee also beneficial?Yes, some studies show decaf coffee is also linked to lower risk of Type 2 diabetes and heart disease due to polyphenols.

Can additives reduce coffee’s benefits?Yes, sugar, syrups, and creamers with saturated fat can dilute or eliminate the health benefits of coffee.

Are energy drinks safe?Researchers advise avoiding energy drinks. They often contain much higher caffeine levels and have been linked to irregular heartbeats and high blood pressure.

Coffee Prices Jump on Slow Brazil Harvest

Source: Barchart
Author: Qahwa World
Date: July 17, 2026

Coffee Prices Jump on Slow Brazil Harvest

  • September arabica rose 2.46% and robusta gained 2.11% on Friday.
  • Brazil’s 2026/27 harvest is only 64% complete, behind last year’s 77% and the 70% average.
  • ICE raised margin requirements twice last week, reducing liquidity and amplifying volatility.
  • Heavy rains in Brazil have disrupted fieldwork and may have lowered crop quality.
  • ICE arabica inventories fell to a 2.25-year low of 332,945 bags.
  • El Niño concerns continue to support prices with potential impacts on Brazil’s flowering.
  • Brazil’s June green coffee exports jumped 14.4% year-on-year to 2.64 million bags.

Coffee prices settled sharply higher on Friday. September arabica closed up 7.70 cents, gaining 2.46%. September robusta closed up 80 points, a rise of 2.11%. The rally came amid delays in Brazil’s coffee harvest.

Safras & Mercado reported the harvest is 64% complete as of July 15. This compares with 77% at the same time last year. The five-year average stands at 70%. The slow pace continues to support prices.

Harvest Delays Drive Coffee Prices Higher

Brazil’s 2026/27 coffee harvest is progressing slowly. Heavy rains have disrupted fieldwork. These rains may have also lowered crop quality. Brazilian farmers are holding back on sales. They hope prices will rise further. They are also bracing for potential El Niño impacts.

Last Monday, arabica soared to a 5.5-month high. Last Tuesday, robusta also hit a 5.5-month high. However, prices have since whipsawed in a wide range. Trading conditions remain illiquid. This has led to volatile price moves.

Brazil Coffee Harvest Progress (as of July 15)
Period Completion
Current year (2026/27) 64%
Previous year (2025/26) 77%
Five-year average 70%

Margin Hikes Reduce Liquidity

ICE raised margin requirements for coffee futures twice last week. This action has dried up liquidity. Many commodity funds have closed their positions. The result has been excessive one-way price moves. Volatility has been amplified by the illiquid conditions.

This has created a challenging trading environment. Prices have moved sharply in both directions. Market participants should expect continued volatility in the near term.

Inventory Trends Support Coffee Prices

ICE coffee inventories have trended lower over the past three months. This is supportive for coffee prices. ICE arabica inventories fell to a 2.25-year low of 332,945 bags on Friday. Meanwhile, ICE robusta inventories fell to a 2-year low on May 15. However, they have since risen to a 3.5-month high of 4,220 lots.

ICE Coffee Inventory Levels
Category Latest Level Status
Arabica inventories 332,945 bags 2.25-year low
Robusta inventories (May 15) 3,631 lots 2-year low
Robusta inventories (current) 4,220 lots 3.5-month high

El Niño Concerns Support Prices

Concerns about an El Niño weather pattern are bullish for prices. Coffee trader Commercial warned that El Niño may delay rains in Brazil. This September and October is when tree flowering normally occurs. Any delay could hurt Brazil’s 2026/27 coffee crop.

Last Wednesday, the US Climate Prediction Center issued a warning. The El Niño pattern that emerged across the equatorial Pacific last month will likely be one of the strongest in more than 75 years. This sets the stage for possible floods, droughts, and temperature fluctuations. These conditions could hinder coffee production in Asia and South America.

Somar Meteorologia reported no rain fell in Minas Gerais in the week through July 5. This is Brazil’s biggest coffee-growing region. The dry conditions add to market concerns.

Bearish Factors to Consider

Despite the bullish momentum, several bearish factors exist. Recent strength in Brazil’s coffee exports is negative for prices. On Thursday, Cecafe reported Brazil’s June green coffee exports jumped 14.4% year-on-year to 2.64 million bags.

Fund positioning also poses risks. Last Friday’s COT data showed funds boosted their long positions in robusta by 5,607 contracts in the week ended July 7. This brought net-long positions to 44,195, the most in more than two years. Such concentrated long positions can accelerate price declines if investors begin to unwind.

Vietnam’s soaring coffee exports are also bearish for robusta prices. On July 3, Vietnam’s National Statistics Office reported coffee exports from January to June rose 7.3% year-on-year to 1.05 million metric tons. Vietnam’s 2025 coffee exports jumped 17.5% to 1.58 million metric tons. Production for 2025/26 is projected to climb 6% to a four-year high of 1.76 million metric tons.

The USDA’s Foreign Agriculture Service projected record global production. World coffee production in 2025/26 is forecast to increase 2% to a record 178.848 million bags. Arabica production is expected to decline 4.7% to 95.515 million bags. Robusta production is projected to rise 10.9% to 83.333 million bags.

Global Supply Forecasts (USDA)
Category Forecast Change
World coffee production 2025/26 178.848 million bags +2.0%
Arabica production 95.515 million bags -4.7%
Robusta production 83.333 million bags +10.9%
Brazil 2025/26 production 63 million bags -3.1%
Vietnam 2025/26 output 30.8 million bags +6.2%
Ending stocks 2025/26 20.148 million bags -5.4%

Technical Perspective

On June 9, arabica coffee fell to a 20.25-month nearest-futures low. Robusta slid to a 3.25-month low. This occurred amid an outlook for a bumper coffee crop in Brazil. However, prices have since recovered significantly. The market remains highly volatile with significant upside potential.

Frequently Asked Questions

How much did coffee prices rise on Friday?September arabica gained 2.46% and September robusta rose 2.11% on Friday, July 17.

What is the status of Brazil’s coffee harvest?Brazil’s 2026/27 harvest is 64% complete as of July 15, behind last year’s 77% and the 70% five-year average.

Why are ICE coffee inventories important?Low inventories reduce available supply and support higher prices. Arabica inventories recently hit a 2.25-year low.

How does El Niño affect coffee prices?El Niño can delay rainfall during Brazil’s critical flowering period in September-October, potentially reducing crop yields.

What is the fund positioning in robusta coffee?Funds held 44,195 net-long positions as of July 7, the highest level in more than two years, increasing downside risk.

What is the global production forecast?USDA forecasts record global production of 178.848 million bags for 2025/26, with robusta up 10.9% and arabica down 4.7%.

Coffee Returns to Bullish Mode After 49% Rally

Source: Barchart / Andrew Hecht
Author: Qahwa World
Date: July 14, 2026

Coffee Returns to Bullish Mode After 49% Rally

  • ICE Arabica coffee futures surged 49.5% in one month, erasing four months of declines.
  • The rally followed a 37.8% drop from January to June, with prices bottoming at $2.3885 per pound.
  • Brazil’s 2026/27 harvest is behind schedule due to heavy rain disrupting operations.
  • ICE Arabica exchange inventories reached a two-year low of 366,756 bags.
  • Emerging El Niño weather patterns could damage Brazil’s flowering and crop.
  • Brazilian farmers are withholding beans, storing them for sale at higher prices.
  • Key resistance is at the October 2025 record high of $4.3795 per pound.

Coffee futures are back in bullish mode. ICE Arabica coffee surged 49.5% over the past month. The rally erased four months of declines. Prices bottomed at $2.3885 per pound on June 9. On July 6, they reached $3.5700 per pound.

The volatility has been extreme. Coffee futures fell 37.8% from January to June. Then they made up all those losses in under one month. The market remains highly volatile with significant upside potential.

Why Is Coffee Back in Bullish Mode?

Several factors are driving the rally. First, Brazil’s 2026/27 harvest is behind schedule. Heavy rain has disrupted harvesting operations. This has increased concerns about coffee bean quality. The prospects for lower Brazilian output have been bullish for prices.

Second, global inventories are low. ICE Arabica exchange inventories reached a two-year low of 366,756 bags. This creates the potential for supply squeezes. Third, production costs are rising due to stubborn global inflation.

Top Coffee Producers (2025)
Country Share of Global Production
Brazil 37.08%
Vietnam 16.54%
Colombia 8.44%
Ethiopia ~4%
Indonesia ~4%

Brazil’s Dominance and Harvest Issues

Brazil is the world’s leading coffee producer. It accounts for 37.08% of global production. This is nearly as much as the next four countries combined. Vietnam, Colombia, Ethiopia, and Indonesia produce a combined 37.41%.

Brazil’s 2026/27 harvest is behind schedule. Heavy rain disrupted the harvest. This increased concerns that coffee bean quality had declined. The prospects for lower Brazilian output have been bullish for ICE Arabica coffee futures prices.

El Niño Risks and Farmer Stockpiling

The emerging El Niño weather pattern could trigger extreme temperature shifts. Irregular precipitation could damage coffee tree flowering. This could negatively impact the overall Brazilian crop. These concerns are pushing prices higher.

Brazilian farmers have begun withholding beans. They are storing them for sale when prices rise. This behavior further tightens supply. It also adds upward pressure on prices.

Technical Levels to Watch

The coffee futures market has clear technical levels. The record high stands at $4.3795 per pound from October 2025. This is the key resistance level. Technical support sits at the May 2025 low of $2.3885 per pound.

At $3.16 per pound on July 7, coffee futures were below the midpoint. However, they had traded above it on July 6. There is significant room for volatile price swings between these levels.

Key Technical Levels for Arabica Coffee
Level Price (per pound)
Record High (October 2025) $4.3795
Current Price (July 7, 2026) $3.16
Recent Low (June 9, 2026) $2.3885
Historical Support (May 2019) $0.876

Futures and Options Trading

There are no ETFs that track coffee prices. Participation is limited to ICE futures and futures options. Each futures contract contains 37,500 pounds of Arabica coffee. At $3.28 per pound, the contract value is $123,000.

Traders can control this value with an original margin deposit of $23,227. This represents 18.9% of the contract value. Recent volatility caused margin requirements to rise from 7.9% of contract value. The exchange can change margin requirements based on market volatility. Wider price swings lead to higher margin requirements.

ICE offers put and call options on Arabica coffee futures. Long options involve paying a premium and are not subject to margin requirements. Short options require margin. The leverage is significant for market participants.

Risk Management Is Essential

Coffee is back in bullish mode in July 2026. This will likely increase trading activity. It could also lead to wide price swings. Any risk position in ICE Arabica coffee requires a risk-reward plan. Traders should use stops and profit horizons. This protects capital and establishes reasonable odds of success.

Frequently Asked Questions

Why is coffee in bullish mode?Brazil harvest delays, low inventories, El Niño risks, and rising production costs are driving coffee futures higher.

How much did coffee futures rise in July 2026?ICE Arabica coffee futures surged 49.5% in one month, erasing four months of declines.

What is Brazil’s share of global coffee production?Brazil accounts for 37.08% of global coffee production, nearly as much as the next four countries combined.

What are the key technical levels for coffee?Resistance is at the October 2025 record high of $4.3795 per pound. Support is at the May 2025 low of $2.3885 per pound.

Are there ETFs that track coffee prices?No. The only soft commodity ETF is Teucrium Sugar ETF (CANE). Coffee participation is limited to ICE futures and options.

What is the margin requirement for coffee futures?The original margin deposit is $23,227 per contract, representing 18.9% of the contract value. Margin requirements can change based on volatility.

NCA Applauds Coffee Exemption from Section 301 Tariffs

Source: National Coffee Association (NCA)
Author: Qahwa World
Date: July 16, 2026

NCA Applauds Coffee Exemption from Section 301 Tariffs

  • USTR announced exemption of coffee from Section 301 tariffs on Brazil.
  • Exemption includes unflavored instant coffee for the first time.
  • Two-thirds of American adults drink coffee daily.
  • NCA President Bill Murray thanked the administration for the decision.
  • The exemption recognizes coffee’s unique benefit to the US economy.
  • The US cannot grow coffee to meet domestic demand.
  • The decision eases cost-of-living pressures for American consumers.

The National Coffee Association issued a statement today. It responded to the USTR’s announcement on coffee tariffs. The USTR confirmed that coffee will be exempted from Section 301 tariffs on Brazil. The exemption includes unflavored instant coffee.

NCA President and CEO William “Bill” Murray thanked the administration. He praised the decision to maintain previous coffee exemptions. He also welcomed the addition of unflavored instant coffee. The move recognizes coffee’s unique benefit to US consumers and companies.

NCA Statement: Coffee Exemption Protects Consumers

“Two-thirds of American adults drink coffee each day – more than any other beverage, including water – and today they can do so with confidence that new tariffs will not affect the largest source of their favorite beverage.

The United States can’t grow coffee to meet our needs, so the administration’s strategic exemptions make critical contributions to easing cost-of-living pressures and enabling coffee’s continued enormous contributions to U.S. jobs, manufacturing, and the economy.”

— William “Bill” Murray, President and CEO, National Coffee Association

Impact on US Consumers

Two-thirds of American adults drink coffee each day. This is more than any other beverage, including water. The exemption ensures that consumers can enjoy their coffee without tariff-related price increases. This is particularly important given current cost-of-living pressures.

The United States cannot grow coffee to meet domestic demand. Therefore, imports are essential. The strategic exemption helps maintain affordable coffee prices for millions of Americans.

Economic Significance of Coffee

Coffee makes enormous contributions to the US economy. It supports jobs across the supply chain. This includes roasting, manufacturing, and retail. The exemption enables these contributions to continue without disruption.

The NCA emphasized that coffee is uniquely important. It is not just a beverage but a critical part of American daily life. The administration’s decision reflects this understanding.

Key Facts About Coffee in the US
Fact Detail
Daily coffee drinkers Two-thirds of American adults
Rank among beverages Most consumed, ahead of water
US coffee production Cannot meet domestic demand
Tariff exemption Includes unflavored instant coffee
Economic impact Supports jobs, manufacturing, and economy

About the Section 301 Investigation

The USTR conducted a Section 301 investigation into various policies and practices of Brazil. As a result, tariffs were imposed on certain goods. However, coffee has been exempted from these tariffs. This decision recognizes the unique position of coffee in the US market.

The NCA has advocated for this exemption. The association represents the US coffee industry. Its members include roasters, retailers, and importers. The exemption benefits the entire industry and consumers.

Frequently Asked Questions

What did the USTR announce regarding coffee tariffs?The USTR announced that coffee, including unflavored instant coffee, will be exempted from Section 301 tariffs on Brazil.

Why is this exemption important?The exemption protects consumers from price increases and supports the US coffee industry, which cannot meet domestic demand through local production.

How many Americans drink coffee daily?Two-thirds of American adults drink coffee each day, making it the most consumed beverage in the country.

What did NCA President Bill Murray say?He thanked the administration for the decision and highlighted coffee’s unique benefit to US consumers, companies, and the economy.

Does the exemption include instant coffee?Yes, the exemption includes unflavored instant coffee for the first time, in addition to previously exempted coffee products.

Why can’t the US produce its own coffee?The US climate is not suitable for commercial coffee cultivation, making imports essential to meet domestic demand.

Global Leaders Unite to Advance Coffee Education

Source: Fondazione Ernesto Illy ETS / UNIDO / SCA / ICO
Author: Editorial Team
Date: July 15, 2026

Global Leaders Unite to Advance Coffee Education

  • Global coffee leaders convened at World of Coffee Brussels for a landmark panel discussion on education.
  • The event celebrated 15 years of the Master in Coffee Economics and Science – Ernesto Illy.
  • The Ernesto Illy Master Alumni Community was officially launched as a global professional network.
  • Panelists explored collaborative frameworks for workforce development in African producing countries.
  • UNIDO’s ACT Coffee Programme and Coffee Training Centres were highlighted as key capacity-building platforms.
  • Ethiopia’s Coffee Training Centre has already certified hundreds of professionals across Africa.
  • Speakers emphasized education as the most sustainable investment in coffee’s future.

Global leaders in coffee, education, and international development convened at World of Coffee Brussels 2026. The event featured a landmark panel discussion on education’s role in shaping the coffee sector’s future. Organized by Fondazione Ernesto Illy ETS, UNIDO, SCA, and ICO, the event marked 15 years of the Master in Coffee Economics and Science.

The panels celebrated the program’s legacy and launched its Alumni Community. Participants also explored collaborative frameworks for workforce development in African producing countries. The message was clear: education is the most sustainable investment in coffee’s future.

Panel I: 15 Years of the Ernesto Illy Master

The first session celebrated 15 editions of the Master in Coffee Economics and Science. It is the only international first-level Master’s programme taught in English. The panel featured founding faculty members, industry partners, and alumni from Costa Rica and Ethiopia.

Speakers included Anna Illy, Sunalini Menon, Eliana Cossio, Daniel Sanchez, and Addisu Dulacha Gobana. The session culminated in the official launch of the Ernesto Illy Master Alumni Community. This global professional network extends the programme’s impact beyond the classroom.

Panel I Speakers – 15 Years of the Ernesto Illy Master
Speaker Affiliation
Anna Illy Chair, Fondazione Ernesto Illy ETS
Sunalini Menon President, CoffeeLab Limited
Eliana Cossio Chief Research Officer, SCA
Daniel Sanchez Alumni 2018, Costa Rica
Addisu Dulacha Gobana Alumni 2019, Ethiopia

“The Master in Coffee Economics and Science – Ernesto Illy was born from a bold vision: to recognize coffee not just as a product, but as a field of knowledge bringing together science, economics, culture, and sustainability in a truly multidisciplinary and international dialogue. Fifteen editions later, it has grown into much more than an academic program: it is a global community of 300 passionate professionals who share a deeper understanding of coffee from plant to cup. With the launch of the Ernesto Illy Master Alumni Community, this shared knowledge becomes an even stronger force: connecting people, inspiring ideas and shaping the future of coffee.”

— Anna Illy, Chair, Fondazione Ernesto Illy ETS

Panel II: Innovation for Capacity Building

The second session examined how international organisations, governments, and the private sector can strengthen human capital. Focus areas included UNIDO/ACT Programme Coffee Training Centres. These are skills platforms across East African countries. The panel also discussed SCA Coffee Education Systems and new collaboration models for Africa.

Ethiopia’s Coffee Training Centre experience was presented by Dr. Adugna Debela, Director General of ECTA. Speakers included Vanusia Nogueira, Iannis Apostolopoulos, Providence Mavubi, Stijn De Lameilliere, and Wouter Cools.

Panel II Speakers – Innovation for Capacity Building
Speaker Affiliation
Vanusia Nogueira Executive Director, ICO
Iannis Apostolopoulos CEO, Specialty Coffee Association
Providence Mavubi Director, Agribusiness, UNIDO
Dr. Adugna Debela Director General, ECTA
Stijn De Lameilliere GPE/WB
Wouter Cools ILO

Shared Conviction: Skills Advancement is Key

Across both panels, a shared conviction emerged. Sustainable transformation requires investing in the enabling environment for skills advancement. This includes robust institutions and accessible training pathways. Internationally recognised certification frameworks are also essential. They allow local professionals to compete, innovate, and lead.

Coffee Training Centres play a crucial role. They equip local actors with technical skills. They link them to advanced training opportunities. This lays the foundation for inclusive value chain participation. It also increases local value addition.

Leadership Perspectives

“For decades, the ICO has recognized that education, skill development, and the transfer of innovation and technology are essential to building a more resilient, sustainable, and prosperous coffee sector. Partnerships are the catalyst for this change, connecting local talent with global expertise, strong institutions, and internationally recognized training and certification pathways. Together, we can transform capacity building into lasting economic and social progress for coffee-producing countries.”

— Vanusia Nogueira, Executive Director, ICO

“Education is not merely a tool for knowledge transfer – it is a foundational investment in the long-term resilience and inclusiveness of the coffee sector. Through its ACT Coffee Programme, UNIDO is committed to building the enabling environment in which skills advancement can take root and thrive. Coffee Training Centres across Africa are proof that when we invest in people, we invest in the entire value chain.”

— Providence Mavubi, Director, Agribusiness and Infrastructure Development, UNIDO

“The Ethiopia Coffee Training Centre demonstrates what becomes possible when local expertise meets international standards. Our producers and professionals are not only learning – they are leading.”

— Dr. Adugna Debela, Director General, ECTA

“Building a more equitable coffee sector begins with creating more access for the people within our industry. SCA is proud to be part of a growing ecosystem of organizations that recognize education as the foundation of a resilient, inclusive value chain. When local professionals have access to internationally recognized pathways, everyone in coffee benefits.”

— Yannis Apostolopoulos, CEO, SCA

Spotlight: Ethiopia’s Coffee Training Centre

The Ethiopian Coffee and Tea Authority hosts the Coffee Training Centre within its premises in Addis Ababa. It was established with AICS funding and UNIDO technical support. Partners include Illycaffè and the Ernesto Illy Foundation.

The centre is equipped with roasting, brewing, and sensory laboratories. It delivers internationally standardized training across the post-harvest coffee value chain. The centre has already certified hundreds of professionals from across Africa.

About the Organizations

Fondazione Ernesto Illy ETS was established to preserve and promote the legacy of Ernesto Illy. It focuses on scientific research, education, and sustainability projects for coffee value chains. The Foundation’s core value is Ethics.

UNIDO is the UN’s specialized agency for inclusive and sustainable industrial development. It supports sustainable supply chains and strengthens agribusinesses. Its ACT Coffee Programme enhances climate resilience and local value addition in Africa.

The International Coffee Organization is the only intergovernmental organization dedicated to coffee sector sustainability. It provides official statistics and facilitates technical cooperation projects.

The Specialty Coffee Association is the global stage for specialty coffee. It brings together diverse voices across the value chain to spark dialogue and fuel innovation.

Frequently Asked Questions

What event took place at World of Coffee Brussels?Global coffee leaders convened for a panel discussion on education, celebrating 15 years of the Master in Coffee Economics and Science and launching its Alumni Community.

What is the Ernesto Illy Master program?It is the only international first-level Master’s programme in Coffee Economics and Science taught in English. It brings together science, economics, culture, and sustainability.

What is the Ernesto Illy Master Alumni Community?It is a global professional network and digital platform launched to extend the programme’s impact beyond the classroom, connecting 300 professionals worldwide.

What are Coffee Training Centres?They are skills platforms across East African countries supported by UNIDO’s ACT Coffee Programme, providing internationally standardized training.

What is the Ethiopia Coffee Training Centre?It is a training centre in Addis Ababa equipped with roasting, brewing, and sensory laboratories, delivering standardized training across the coffee value chain.

How many professionals has the Ethiopia CTC trained?The centre has already certified hundreds of professionals from across Africa since its establishment.

CQI and BSCA Partner to Expand Coffee Education in Brazil

Source: Coffee Quality Institute / Brazilian Specialty Coffee Association
Author: Editorial Team
Date: July 14, 2026

CQI and BSCA Partner to Expand Coffee Education in Brazil

  • CQI and BSCA signed an exclusive agreement to distribute CQI’s educational offerings in Brazil.
  • The partnership aims to make coffee education more affordable for Brazilian producers.
  • BSCA will coordinate all CQI educational activities in Brazil.
  • Both organizations will work to secure public and private funds to lower student costs.
  • The agreement was signed at World of Coffee Europe in Brussels.
  • CQI has operated in Brazil since 2014, but this deal deepens the partnership.
  • The goal is to improve coffee quality and producer livelihoods through enhanced training.

The Coffee Quality Institute has reached an agreement with the Brazilian Specialty Coffee Association. The agreement designates BSCA as the exclusive distributor of CQI’s educational offerings in Brazil. This collaboration aims to make coffee education more accessible to Brazilian producers.

The agreement was signed in Brussels at World of Coffee Europe. It advances CQI’s mission of improving coffee quality. It also supports BSCA’s goal of enhancing the value of Brazilian specialty coffee.

Deepening a Longstanding Partnership

CQI and BSCA have partnered since 2014. They have delivered coffee education in Brazil for over a decade. However, today’s agreement deepens that commitment significantly. It recognizes BSCA’s track record of leadership on coffee quality in Brazil.

Michael Sheridan, CEO of CQI, acknowledged the cost barrier. “We recognize that the cost of CQI courses has limited access to coffee education in Brazil,” he said. “We will work with BSCA to access local funds and reduce costs for students.”

How the Partnership Works

Under this exclusive partnership, BSCA will coordinate all CQI educational activities in Brazil. This ensures that classes are taught at the same high level. All courses will be delivered by authorized CQI Educators.

The agreement also stipulates that BSCA will work to secure public and private funds. The goal is to effectively lower student prices. This will make education more accessible to a wider range of producers.

Key Partnership Details
Element Description
Agreement Type Exclusive distribution of CQI educational offerings in Brazil
Duration Ongoing partnership (since 2014, now deepened)
BSCA Role Coordinate all CQI educational activities in Brazil
Funding Goal Secure public and private funds to lower student prices
Quality Standard Classes taught by authorized CQI Educators at high level
Signing Location World of Coffee Europe, Brussels

Leadership Perspectives

“CQI and BSCA have partnered since 2014 to deliver coffee education in Brazil, but today’s agreement deepens our longstanding commitment to BSCA in recognition of its track record of leadership on coffee quality in Brazil.”

— Michael Sheridan, CEO of CQI

“This partnership represents a significant step towards further strengthening the Brazilian coffee sector. The commitment of these organizations to promoting participation and increasing access will lead to increased coffee quality and ultimately improve the livelihoods of its producers through this enhanced education and training.”

— Vinicius Estrela, Executive Director of BSCA

What CQI Will Provide

CQI will support BSCA in several ways. First, it will provide access to its comprehensive catalog of educational offerings. Second, it will offer ongoing training for educators. Third, it will partner in securing funding for the programs.

Both organizations are committed to promoting high standards of coffee quality and education in Brazil. The partnership aims to create lasting impact for the Brazilian coffee sector.

About the Organizations

The Coffee Quality Institute is a non-profit that works globally. It improves the quality of coffee and the lives of the people who produce it. For thirty years, CQI has trained people in more than thirty coffee-growing countries.

The Brazilian Specialty Coffee Association unites producers, exporters, roasters, and coffee shops. It operates through three pillars: quality, traceability, and sustainability. The association fosters practices that transform each cup into a unique experience.

Frequently Asked Questions

What is the new agreement between CQI and BSCA?CQI designated BSCA as the exclusive distributor of CQI’s educational offerings in Brazil, making coffee education more accessible and affordable.

Why is this partnership important?It reduces the cost barrier for coffee education in Brazil, enabling more producers to access high-quality training and improve their coffee quality.

How long have CQI and BSCA worked together?They have partnered since 2014, but this new agreement deepens and formalizes their relationship significantly.

Who will teach the CQI courses in Brazil?All courses will be taught by authorized CQI Educators to maintain the same high standard of instruction.

How will the partnership reduce costs for students?BSCA will work to secure public and private funds to effectively lower student prices for CQI courses.

What is the goal of this collaboration?The goal is to improve coffee quality and producer livelihoods in Brazil through enhanced education and training.

ICO Coffee Market Report June 2026: Prices Rebound on El Niño Fears

Author: Qahwa World – London
Source: International Coffee Organization (ICO) – Coffee Market Report, June 2026
Date: July 2026

ICO Coffee Market Report June 2026: Prices Rebound on El Niño Fears

Executive Summary

  • The ICO Composite Indicator Price (I‑CIP) averaged 248.90 US cents/lb in June 2026, down 2.8% from May. However, prices rebounded sharply by 17.4% from a two-year low on June 9 to a two-month high at month-end.
  • Super El Niño fears (67% confidence) and excessive rainfall in Brazil (1,956% above average in Minas Gerais) slowed the harvest and raised quality concerns, reversing the downward trend.
  • Robusta prices rose 1.7% to 169.39 US cents/lb, while Brazilian Naturals fell 7.4% to 272.01 US cents/lb.
  • US certified Arabica stocks fell 13.3% to 0.41 million bags, the lowest since February 2024. London Robusta stocks rose 4.8% to 0.68 million bags.
  • Global green bean exports fell 4.1% to 10.8 million bags in May 2026, driven by a 17.2% drop in Brazilian Naturals. Robusta exports rose 4.8%.
  • The Strait of Hormuz closure added 10-14 days to shipping routes, raising fuel costs 68% and fertilizer prices 25%.
  • The USDA forecast a record Brazilian 2026/27 crop at 71.9 million bags (+14%), while Rabobank raised its global Arabica surplus estimate by 35.7%.

The ICO Composite Indicator Price averaged 248.90 US cents per pound in June 2026. This was a 2.8% decrease from May 2026.

Prices continued their downward trend in early June. They fell to 231.96 US cents/lb on June 9, the lowest level in nearly two years. However, prices then rebounded sharply by 17.4%.

They reached a two-month high of 272.39 US cents/lb at the end of the month. Weather emerged as the principal driver of coffee price dynamics in June.

The Colombian Milds and Robustas recorded modest gains. The Colombian Milds rose 0.4% to 324.60 US cents/lb. Robustas increased 1.7% to 169.39 US cents/lb.

In contrast, the Other Milds declined 2.4% to 307.83 US cents/lb. The Brazilian Naturals fell 7.4% to 272.01 US cents/lb. London Robusta stocks rose 4.8% to 0.68 million bags.

US certified Arabica stocks fell 13.3% to 0.41 million bags. This was the lowest level since February 2024. The market became increasingly nervous as inventories tightened.

Super El Niño Fears Drive Rebound

Market sentiment shifted abruptly in June. Growing confidence that El Niño would develop into a Super El Niño halted the downward price movement on June 9.

The Japan Meteorological Agency and NOAA released reports on June 10 and 11. They indicated 67% confidence in a Super El Niño event, the highest confidence level on record.

These forecasts raised concerns about the potential impact on the 2026/27 coffee harvest. The effects vary across regions and seasons.

Reduced rainfall is expected in the Caribbean, Central America, and Mexico. Raised temperatures and reduced rainfall are forecast for northern Brazil and parts of South America.

Increased rainfall is expected in southern Brazil and Bolivia. More erratic rainfall and flooding are forecast for East Africa. Drought conditions are expected in Southeast Asia.

On June 17 and 24, Safras & Mercado reported that Brazil’s 2026/27 coffee harvest was progressing slowly. The harvest reached 39% and 44% completion, respectively.

The delay was concentrated in Arabica areas. Excess rainfall disrupted harvesting and drying operations, particularly in Minas Gerais. The 44% completion figure on June 24 was below the 51% recorded a year earlier and the five-year average of 47%.

On June 29, Somar Meteorologia measured 31.3 mm of rainfall in Minas Gerais. This was equivalent to 1,956% of the historical average for the period. The unusually high precipitation occurred during the normally dry season. It delayed harvesting and drying operations and raised concerns over bean quality.

Strait of Hormuz Disruptions Add Supply Pressure

The Strait of Hormuz was effectively closed from February 28. This forced Asia-Europe shipping routes to divert via the Cape of Good Hope. Transit times increased by 10 to 14 days.

Bunker fuel prices were up 68% from mid-to-late February. Container spot rates roughly doubled. Fertilizer prices increased 25%.

A gradual reopening occurred on June 22-23 following the U.S.-Iran agreement on June 17. This pushed Robusta prices to a one-week low. However, attacks on the Ever Lovely on June 25 and the Kiku on June 27 renewed geopolitical tensions within days. The associated premiums returned quickly.

Combined ICE-certified stocks fell to 1.09 million bags on June 30. This was the lowest level since February 2024. The decline signaled tighter availability of deliverable stocks. The market was left with limited buffers against unforeseen supply disruptions.

Supply Fundamentals and Bearish Factors

On June 1, the USDA forecast Brazil’s 2026/27 crop at a record level. The forecast was 14% above the previous season. Rabobank raised its 2026/27 global Arabica surplus estimate by 35.7%.

These forecasts reinforced previous positive reports. CONAB’s official second survey projected Brazil’s total crop at 66.7 million bags. Safras & Mercado projected a total crop increase of 13.4%.

In late May, the USDA revised its estimate of Vietnam’s 2025/26 output upwards to 31.7 million bags. It forecast production at 32.5 million bags for 2026/27. The dollar index stood at 101.6 during the week of June 22. This was close to a 15-month high, creating a headwind for coffee prices.

The arbitrage between the London and New York futures markets contracted by 13.3% to 100.86 US cents/lb in June 2026. Intra-day volatility of the I-CIP decreased by 0.2 percentage points to 8.6%.

Exports: Arabica Declines, Robusta Gains

Global green bean exports totalled 10.8 million bags in May 2026. This was a 4.1% decline compared to 11.26 million bags in May 2025. All coffee groups recorded declines except Robustas.

Robusta exports were up 4.8% to 4.34 million bags. This was driven mainly by Brazil, where exports surged by 195.6% to 0.61 million bags. The sharp rise reflects differences in harvest timing between the current and previous Robusta harvests.

Colombian Milds exports fell by 1.7% to 0.98 million bags. This marked the seventh consecutive month of negative growth. Other Milds shipments fell by 2.8% to 2.75 million bags. This was the first negative growth observed in coffee year 2025/26.

Brazilian Naturals exports fell by 17.2% to 2.73 million bags. This marked the 15th consecutive month of negative growth. The declines were primarily driven by Brazil and Ethiopia.

Total Arabica exports decreased to 6.46 million bags in May 2026. This was a 9.3% drop from 7.12 million bags in May 2025. As a result, Arabica’s share of total green bean exports fell to 60.2% from 64.0% a year earlier.

Table 1: Green Bean Exports by Coffee Group (million 60‑kg bags)

Coffee Group May 2025 May 2026 Change
Robustas 4.14 4.34 +4.8%
Colombian Milds 0.99 0.98 -1.7%
Other Milds 2.82 2.75 -2.8%
Brazilian Naturals 3.30 2.73 -17.2%

Exports by Region: Mixed Performance

Global exports of all forms of coffee decreased by 3.2% to 12.38 million bags in May 2026. The dynamics across the four regions were mixed.

Exports from Asia & Oceania were up 0.4% to 4.32 million bags. India led the growth with exports increasing 33.7% to 0.74 million bags. However, this was largely offset by decreases in Indonesia and Vietnam.

Africa’s exports decreased by 24.1% to 1.63 million bags. The contraction was driven largely by Ethiopia and Uganda. Their combined exports fell to an estimated 1.31 million bags from 1.77 million bags in May 2025.

South America’s exports increased by 4.3% to 4.29 million bags. This was the first monthly increase in 18 months. The upturn was driven mainly by Brazil, whose exports were up 4.3%.

The Caribbean, Mexico & Central America decreased by 3.8% to 2.14 million bags. This was the first negative growth in coffee year 2025/26, driven mainly by Nicaragua.

Soluble coffee exports increased by 3.6% to 1.51 million bags. Vietnam, Brazil, and India were the largest exporters. Roasted bean exports were up 10.8% to 0.07 million bags.

Frequently Asked Questions

What was the ICO composite price in June 2026?

The I-CIP averaged 248.90 US cents/lb in June 2026, a 2.8% decrease from May. However, prices rebounded sharply from a two-year low on June 9 to a two-month high by month-end.

What caused the price rebound in June?

Super El Niño fears (67% confidence) and excessive rainfall in Brazil (1,956% above average in Minas Gerais) slowed the harvest and raised quality concerns, reversing the downward trend.

How did coffee stocks perform in June?

US certified Arabica stocks fell 13.3% to 0.41 million bags, the lowest since February 2024. London Robusta stocks rose 4.8% to 0.68 million bags. Combined ICE-certified stocks fell to 1.09 million bags.

How did the Strait of Hormuz closure affect coffee prices?

The closure added 10-14 days to shipping routes, raising bunker fuel costs 68%, container spot rates by about 100%, and fertilizer prices 25%.

What were the export trends in May 2026?

Global green bean exports fell 4.1% to 10.8 million bags. Robusta exports rose 4.8%, while Brazilian Naturals fell 17.2%. Total Arabica exports were down 9.3%.

What was Brazil’s harvest outlook in June?

The USDA forecast a record 2026/27 Brazilian crop at 71.9 million bags (+14%). However, excessive rainfall in June slowed harvesting, with only 44% completed by June 24, below the five-year average of 47%.


Author: Qahwa World – London | Source: International Coffee Organization – Coffee Market Report, June 2026 | Date: July 2026

Margin Hikes Drive Coffee Prices Lower

Source: Commodity Bulletin / ICE / USDA / ICO
Author: Editorial Team
Date: July 10, 2026

Margin Hikes Drive Coffee Prices Lower

  • September arabica fell 13.65 cents (-3.92%), while robusta dropped 191 points (-4.72%) on Friday.
  • ICE raised margin requirements twice in one week, reducing liquidity and forcing fund liquidation.
  • Funds increased net-long robusta positions to 44,195 contracts, the highest in over two years.
  • Brazil’s harvest is only 52% complete, behind last year’s 60% and the 55% five-year average.
  • El Niño concerns grow as forecasts warn of delayed rainfall during Brazil’s flowering period.
  • USDA projects a record 71.9 million-bag Brazilian crop for 2026/27, up 14% from last year.
  • Global 2025/26 production is forecast at a record 178.848 million bags.

Coffee prices ended the week sharply lower. September arabica fell 13.65 cents to close at 3.92% lower. September robusta dropped 191 points, a decline of 4.72%. The selloff extended the extreme volatility seen over recent sessions.

The decline followed two margin requirement increases by the Intercontinental Exchange. Higher margins reduced market liquidity. This forced many commodity funds to liquidate positions. The result amplified one-sided price movements.

Speculative Positioning Adds Pressure

Fund positioning has added to the downward pressure. According to Friday’s Commitment of Traders report, funds increased their net-long robusta position. They added 5,607 contracts in the week ending July 7. Their total reached 44,195 contracts. This is the highest level in more than two years.

Such concentrated long positions can accelerate price declines. This happens when investors begin unwinding their holdings. The current market structure remains vulnerable to further selloffs.

Brazil Harvest Behind Schedule

Earlier this week, coffee prices had surged on supply concerns. Arabica reached a 5½-month high on Monday. Robusta climbed to a five-month high on Tuesday. These gains were supported by delays in Brazil’s harvest.

According to Safras & Mercado, Brazil’s 2026/27 coffee harvest was 52% complete as of July 1. This compares with 60% at the same time last year. The five-year average stands at 55%. The slower pace reflects persistent rainfall disruptions.

Brazil Coffee Harvest Progress (as of July 1, 2026)
Period Harvest Progress
Current year (2026) 52%
Previous year (2025) 60%
Five-year average 55%

Weather and El Niño Concerns

Weather concerns continue to underpin the market. Forecasts from Rural Clima indicate rainfall across much of Brazil during mid-July. This could negatively affect coffee crops. Heavy rains over the past month have already disrupted harvesting activities. They may have also reduced crop quality.

Growing concerns over El Niño continue to influence market sentiment. Commercial warned that the phenomenon could delay rainfall in Brazil. The critical flowering period in September and October is at risk. This could potentially affect the 2026/27 crop.

The U.S. Climate Prediction Center also issued a warning this week. The developing El Niño event could become one of the strongest in more than 75 years. This increases the risk of floods, droughts, and temperature extremes across Asia and South America.

Meanwhile, Somar Meteorologia reported that no rainfall was recorded in Minas Gerais. This is Brazil’s largest coffee-growing state. The dry spell occurred during the week ending July 5.

Inventory and Supply Data

ICE-certified coffee inventories remain an important market support. Arabica stocks fell to 344,269 bags on Friday. This is their lowest level in more than 2¼ years. Robusta inventories, however, have recovered from a two-year low. They rose from 3,631 lots on May 15 to 4,200 lots. This is the highest level in about 3½ months.

Bearish Supply Outlook

Despite recent weather-related support, the broader supply outlook remains bearish. On June 3, the USDA Foreign Agricultural Service projected a record Brazilian coffee crop. The forecast stands at 71.9 million bags for 2026/27. This represents a 14% increase from the previous year.

Rabobank also raised its forecast for the global arabica surplus. The new estimate is 9.5 million bags. This is up from 7.0 million bags previously. In addition, Cecafé reported that Brazil’s green coffee exports rose 4.2% year-on-year in May. The total reached 2.73 million bags.

Vietnam is also adding to supply expectations. The country’s National Statistics Office reported strong export figures. Coffee exports during January–June 2026 increased 7.3% year-on-year to 1.05 million metric tons. Vietnam’s 2025 coffee exports rose 17.5% to 1.58 million metric tons. Production for 2025/26 is expected to increase 6% to a four-year high of 1.76 million metric tons (29.4 million bags).

Global Coffee Supply Forecasts
Indicator Value
Global 2025/26 production (USDA) 178.848 million bags (record)
Brazil 2026/27 crop (USDA FAS) 71.9 million bags (record)
Global arabica surplus (Rabobank) 9.5 million bags
Vietnam 2025 coffee exports 1.58 million metric tons (+17.5%)
Vietnam 2025/26 production 1.76 million metric tons (4-year high)
Global ending stocks (USDA) 20.148 million bags (-5.4%)

The International Coffee Organization previously reported global coffee exports for the current marketing year. Exports declined 0.3% year-on-year to 138.658 million bags.

According to the USDA’s biannual report, global coffee production for 2025/26 is forecast to reach a record 178.848 million bags. This represents a 2% increase from the previous year. Arabica production is expected to decline 4.7% to 95.515 million bags. Robusta production is projected to rise 10.9% to 83.333 million bags.

The USDA forecasts Brazil’s 2025/26 production at 63 million bags. This is down 3.1% from the previous year. Vietnam’s output is expected to increase 6.2% to 30.8 million bags. Global ending stocks are forecast to fall 5.4% to 20.148 million bags from 21.307 million bags a year earlier.

Frequently Asked Questions

Why did coffee prices fall sharply on Friday?September arabica fell 3.92% and robusta dropped 4.72% after ICE raised margin requirements twice in one week, reducing liquidity and forcing fund liquidation.

What is the current fund positioning in coffee?Funds increased their net-long robusta position to 44,195 contracts, the highest level in more than two years, making the market vulnerable to rapid selloffs.

How is Brazil’s 2026/27 coffee harvest progressing?The harvest is 52% complete as of July 1, behind last year’s 60% and the five-year average of 55%, due to persistent rainfall delays.

What is the El Niño risk for coffee production?El Niño could delay rainfall in Brazil during the September-October flowering period, potentially damaging the 2026/27 crop, with forecasts suggesting one of the strongest events in 75 years.

What does the supply outlook show?USDA projects a record 71.9 million-bag Brazilian crop for 2026/27, while Vietnam’s exports rose 7.3% in early 2026, signaling ample global supply.

What is the global production forecast?USDA forecasts record global production of 178.848 million bags for 2025/26, with robusta up 10.9% and arabica down 4.7%.

$1.5M Initiative Modernizes Coffee Breeding

Source: World Coffee Research / FFAR
Author: Qahwa World
Date: June 5, 2026

$1.5M Initiative Modernizes Coffee Breeding

  • World Coffee Research launched a $1.5 million project to modernize coffee breeding tools.
  • New molecular breeding tools can shorten variety development timelines by half or more.
  • The research targets major threats: coffee leaf rust, coffee berry disease, fruit rot, and berry borer.
  • A public-private partnership includes FFAR funding and industry co-investment from Taylors of Harrogate and Coffee Circle.
  • Global partners include Cenicafé, KALRO, and USDA-ARS.
  • Three workstreams cover arabica markers, robusta genotyping, and breeder training.
  • Record-high 2025 prices reflect urgent need for more resilient coffee varieties.

World Coffee Research announced a $1.5 million project to modernize coffee breeding. The initiative develops high-precision tools to make breeding faster, better, and cheaper. These tools will accelerate the creation of high-performing varieties for the next era of coffee.

Using molecular breeding approaches, breeding timelines can be shortened by half or more. The project is supported by a grant from the Foundation for Food & Agriculture Research. Industry partners Taylors of Harrogate and Coffee Circle are matching the investment.

Closing Coffee’s Innovation Gap

Other major crops have benefited from modern genomic revolutions. Coffee breeding has remained largely stuck in traditional methods. Record-high prices in 2025 reflect a profound underinvestment in coffee R&D. The industry faces a USD$126–405 million per year gap.

This underinvestment has left farmers vulnerable to evolving environmental stressors. More productive and resilient varieties are urgently needed. This project aims to address that gap directly.

Three Workstreams Drive the Research

The project includes three technical workstreams. Each targets a critical area of coffee breeding innovation.

Project Technical Workstreams
Workstream Focus Expected Impact
Arabica Marker Mapping Coffee leaf rust, berry disease, fruit rot, berry borer Faster disease resistance selection
Robusta Genotyping Tool 3,500 genetic markers for Coffea canephora Modern genetic roadmap for robusta
Breeder Training Genomic approaches for national breeders Global technology transfer

The first workstream focuses on arabica genetic markers. It targets devastating pests and diseases. These include coffee leaf rust, coffee berry disease, coffee fruit rot, and coffee berry borer. Together, these cause hundreds of millions in annual production losses.

The second workstream creates a foundational genotyping tool for robusta. Robusta now accounts for over 40% of global production. The tool utilizes 3,500 genetic markers. A similar tool for arabica was developed in 2025. It is already being used in the Innovea Global Coffee Breeding Network.

The third workstream trains national breeders from multiple origin countries. This ensures advanced tools integrate into local programs. The goal is delivering improved trees to farmers’ fields faster.

Global Scientific Partnership

The initiative leverages a global network of technical experts. In East Africa, WCR works with KALRO to advance tools for coffee berry disease resistance. The USDA-ARS at TARS in Puerto Rico conducts screening for coffee leaf rust and fungal pathogens. In Colombia, Cenicafé collaborates on berry borer marker development.

“Cenicafe is pleased to be part of this collaborative research program and to host plant breeders from around the world. The future of global coffee production and climate adaptation will depend on scientific excellence and the development of productive, resilient, high-quality varieties. Collaborative science ensures the best cup remains on the tables of millions.”

— Santiago Jaramillo, Scientific Director, Cenicafé

Industry Support for the Initiative

Keith Writer, Supply Director at Taylors of Harrogate, emphasized the importance of this work. “Taylors depends on the success of many origins around the world to source the high-quality coffee our customers love. Their success depends on coffee farmers having access to new, climate-resilient varieties as quickly as possible. Bringing coffee breeding into the future is essential for farmers and essential for our entire industry.”

Leadership Perspectives

Dr. Jennifer “Vern” Long, CEO of World Coffee Research, highlighted the project’s foundational nature. “Better coffee starts with better trees. This project is about building foundational technology that will benefit our entire sector. We are providing the industry with the insurance it needs to thrive.”

Dr. Kathy Munkvold, Scientific Program Director at FFAR, noted the broader impact. “This research will equip breeders with the tools they need to accelerate the development of improved coffee varieties, helping farmers reduce losses and strengthen productivity.”

Frequently Asked Questions

What is the goal of this $1.5 million project?The project aims to modernize coffee breeding through molecular tools, making breeding faster, better, and cheaper for the entire sector.

How much time can the new tools save?Molecular breeding approaches can shorten variety development timelines from 25-30 years by half or more.

What diseases are being targeted?The research targets coffee leaf rust, coffee berry disease, coffee fruit rot, and coffee berry borer.

Who are the project partners?Partners include FFAR, Taylors of Harrogate, Coffee Circle, Cenicafé, KALRO, and USDA-ARS.

What is the Innovea Global Coffee Breeding Network?It is a WCR network that uses shared science to advance coffee breeding goals globally. The arabica genotyping tool is already in use there.

Is this project using genetic modification?No, molecular breeding uses the plant’s natural genetic diversity without involving genetic modification.

Brazil Coffee Harvest 2026 Faces Delays

Source: Sucafina Brazil / Industry Report
Author: Qahwa World
Date: July 8, 2026

Brazil Coffee Harvest 2026 Faces Delays

  • Brazil’s 2026/27 crop is forecast at 75.4 million bags, driven by a 27% increase in Arabica production.
  • Harvest progress is significantly slower than usual, reaching only 45.2% by June 26.
  • Early quality indicators are strong, with 25% of Arabica grading screen 17+ and 70% of Robusta grading screen 13+.
  • Sucafina plans to expand IMPACT verification by 16% in 2026 across key producing regions.
  • Regenerative agriculture initiatives include 45 demonstration plots and training for 50 producers.
  • Two flagship programs, SEMEIA and RE.CO.LHA, are moving from planning to implementation this year.
  • Despite delays, tree health and vegetative growth suggest a positive outlook for the 2027/28 crop.

Brazil’s 2026/27 coffee harvest is expected to arrive late. Persistent rainfall and delayed Robusta maturation have slowed operations. However, early quality indicators remain promising.

The total crop is forecast to reach 75.4 million bags. This represents a significant recovery led by Arabica production. At the same time, sustainability initiatives continue to expand across key regions.

Arabica Harvest Shows Strong Recovery

The Arabica harvest is progressing more slowly than usual. Recurring rainfall throughout May and June caused significant delays. As of June 26, the overall Brazilian harvest reached 45.2%. This is below last year’s pace of 52.1%. It is also below the historical average of 51%.

Despite the slower pace, Arabica production is forecast to increase by 27%. This growth drives the total crop estimate to 75.4 million bags. Early quality indicators align with expectations for a high-volume crop. Screen 17+ beans account for around 25% of harvested volumes.

In addition, the recurring rains have supported tree health. Vegetative growth remains strong. This suggests a positive outlook for the 2027/28 crop as well.

Robusta Harvest Behind Schedule

The Robusta harvest is also behind schedule. The primary reason is a later-than-usual maturation cycle. Weather disruptions are not the main factor. Harvest activity began within the usual window in April and May. However, progress has been significantly slower than normal.

Completion is expected by the end of July. Robusta production is forecast to decline slightly by approximately 4% year-on-year. Nevertheless, early quality has been encouraging. Around 70% of beans grade screen 13 and above. Overall quality remains strong. This supports expectations for a solid crop despite the delayed harvest.

Brazil 2026/27 Coffee Harvest Key Indicators
Indicator Value
Total forecasted crop 75.4 million bags
Arabica production growth +27% year-on-year
Harvest progress (as of June 26) 45.2%
Arabica screen 17+ quality 25% of harvested volumes
Robusta screen 13+ quality 70% of harvested volumes
Robusta production change -4% year-on-year

Sustainability Efforts Gain Momentum

Sucafina’s sustainability efforts continue to expand. The company is advancing the re-verification of IMPACT producer groups. These groups span the Cerrado, Mogiana, Sul de Minas, and Conilon regions. This process reinforces commitment to responsible sourcing and high-quality standards.

In 2026, the team in Brazil aims to expand IMPACT verification by approximately 16%. The strongest growth is expected across Arabica-producing regions. Matas de Minas has been identified as a strategic priority. Updated participation figures are expected by September.

Regenerative Agriculture Through IMPACT Beyond

Through IMPACT Beyond, Sucafina deepens its focus on regenerative agriculture. Producers receive assistance on multiple fronts. This includes low-carbon fertilizers, composting, and irrigation management. Soil health assessment uses Embrapa’s BioAS methodology.

BioAS adds a biological layer to routine soil testing. It measures the activity of two enzymes: arylsulfatase and beta-glucosidase. This provides real-time data on soil health, sustainability, and productive potential. Early detection of degradation helps build long-term soil resilience.

So far, the program has set over 45 demonstration plots. Around 50 producers have received training. This gives farmers practical, field-based learning opportunities.

SEMEIA and RE.CO.LHA Lead the Way

2026 marks a pivotal year for IMPACT Beyond. Two flagship initiatives are moving from planning to implementation: SEMEIA and RE.CO.LHA.

RE.CO.LHA operates across Brazil’s Arabica regions. These include Cerrado, Mogiana, and South Minas Gerais. The program runs on a four-year cycle. It targets 300 farms with technical assistance, farmer training, and on-farm interventions. The goal is to improve soil health, cut production costs, and lower carbon emissions.

SEMEIA is now in its first year. It is transforming Brazil’s Robusta sector. In just 12 months, the program has conducted more than 100 soil analyses. These cover physical, chemical, and biological indicators. It has distributed more than 120 tonnes of low-carbon fertilizers. Farm carbon footprints have been measured. Through a partnership with EMATER-MG, production cost analyses give producers clearer visibility into their costs.

“It is incredibly rewarding to see the positive feedback from farmers. What stands out most is our collaborative approach, aligning farmers’ needs with what investors expect. It is a challenge, but an inspiring one, because every step forward builds a more sustainable and profitable future for the communities we support.”

— Mariana Martins, Sustainability Manager at Sucafina Brasil

Frequently Asked Questions

What is the forecast for Brazil’s 2026/27 coffee crop?The total crop is forecast at 75.4 million bags, driven by a 27% increase in Arabica production.

Why is the harvest delayed?Persistent rainfall in May and June delayed Arabica harvest. Robusta harvest is also behind schedule due to a later-than-usual maturation cycle.

How is coffee quality this season?Early quality indicators are strong. Around 25% of Arabica beans grade screen 17+, and 70% of Robusta beans grade screen 13+.

What is the IMPACT program?IMPACT is Sucafina’s Responsible Sourcing Program. It focuses on responsible sourcing, partnerships at origin, and high-quality standards.

What are SEMEIA and RE.CO.LHA?They are two flagship sustainability initiatives. RE.CO.LHA targets Arabica regions with technical assistance. SEMEIA focuses on transforming Brazil’s Robusta sector.

How does BioAS methodology work?BioAS adds a biological layer to soil testing. It measures enzyme activity to assess soil health, sustainability, and productive potential in real time.