Tag: Arabica

Dollar Strength Weighs on Coffee Prices

Posted on by Qahwa World

Source: Barchart – Adapted by Qahwa World |
Author: Qahwa World |
Date: June 19, 2026

Dollar Strength Weighs on Coffee Prices, Capping Gains Despite Brazil Harvest Delays

Key Takeaways:

  • Arabica prices closed down 0.99% as the dollar index surged to a 13-month high, triggering long liquidation in coffee futures.
  • ICE arabica inventories fell to a 27-month low of 394,267 bags.
  • Rainfall expected in Brazil could delay the harvest, but next week may bring dry weather to key coffee regions.
  • El Niño concerns support prices, with a 67% chance of a “Super El Niño” this year.
  • USDA forecasts a record Brazil 2026/27 crop of 71.9 million bags (+14% y/y).
  • Vietnam’s exports rose 7.9% in the first five months of 2026, with production expected at 29.4 million bags (+6%).
  • Strait of Hormuz disruptions continue to support prices through higher shipping and insurance costs.

Coffee prices closed mixed on Thursday, giving up early gains as the dollar index surged to a 13-month high, triggering a wave of long liquidation in coffee futures. July arabica futures fell 0.99%, while July robusta futures edged up 0.14%.

Prices had rallied sharply over the past week, reaching five-week highs amid concerns that persistent rain in Brazil would delay the coffee harvest. However, gains faded after meteorologist Climatempo said Brazil’s key coffee-growing regions are expected to see mostly dry weather next week.

Dollar and Weather Determine Price Direction

The dollar index rose to a 13-month high, making dollar-denominated commodities more expensive for holders of other currencies and triggering selling in coffee futures. On the weather front, forecaster Vaisala expects moderate to heavy rainfall across Brazil’s coffee-growing regions this week, which could delay the harvest and reduce immediate supplies. However, Climatempo’s forecast of dry weather next week eased some concerns.

Exchange Inventories at Multi-Year Lows

ICE arabica coffee inventories fell to 394,267 bags on Thursday, the lowest level in 27 months. This decline in inventories supports prices and reflects tight physical supplies. In contrast, ICE robusta inventories jumped from a two-year low of 3,631 lots on May 15 to 4,032 lots, the highest level in 2.25 months.

Indicator Value Significance
July Arabica Futures -0.99% Decline pressured by dollar strength
July Robusta Futures +0.14% Slight gain
ICE Arabica Stocks 394,267 bags 27-month low
ICE Robusta Stocks 4,032 lots 2.25-month high
Dollar Index 13-month high Pressure on commodities

El Niño Concerns Support Prices and Threaten Next Year’s Crop

Concerns over the impact of an El Niño weather pattern on Brazil’s next coffee crop continue to support prices. Coffee trader Commercial warned that El Niño could delay the arrival of seasonal rains during Brazil’s critical flowering period in September and October, potentially damaging the 2026/27 crop. The US National Oceanic and Atmospheric Administration (NOAA) estimates a 67% probability of a “Super El Niño” this year, which could be the strongest on record. The Japan Meteorological Agency confirmed that El Niño conditions have formed across the equatorial Pacific, setting the stage for months of floods, droughts, and temperature fluctuations that could hinder coffee production in Asia and South America.

Large Crops Continue to Weigh on the Market

Despite recent gains, the broader market remains under pressure from expectations of abundant coffee supplies. On June 3, the USDA’s Foreign Agricultural Service (FAS) projected Brazil’s 2026/27 coffee production at a record 71.9 million bags, up 14% from the previous year. Rabobank also increased its forecast for the global arabica surplus in 2026/27 to 9.5 million bags, up from 7 million bags previously. In addition, Cecafé reported that Brazil’s green coffee exports rose 4.2% year-on-year in May to 2.73 million bags.

Vietnam Expands Exports and Production, Adding Pressure

Vietnam, the world’s largest robusta producer, continues to increase exports, adding further pressure on prices. According to Vietnam’s National Statistics Office, coffee exports during the first five months of 2026 reached 922,000 metric tons, up 7.9% from the same period a year earlier. Full-year exports in 2025 rose 17.5% to 1.58 million metric tons. Vietnam’s 2025/26 coffee production is also expected to increase by 6% year-on-year to 1.76 million metric tons, equivalent to approximately 29.4 million bags.

Strait of Hormuz Disruptions Continue to Support Prices

Ongoing geopolitical tensions in the Strait of Hormuz continue to disrupt global coffee supplies and support prices. The closure has tightened supplies by raising shipping rates, insurance premiums, fuel costs, and fertilizer prices, increasing costs for importers and roasters. This geopolitical factor adds an additional layer of support to prices amid continued instability in the region.

Global Production Outlook and Inventories Point to a Delicate Balance

The International Coffee Organization (ICO) reported that global coffee exports during the current marketing year (October–September) totaled 138.66 million bags, slightly down 0.3% from the previous year. Meanwhile, the USDA’s FAS projects global coffee production in 2025/26 to reach a record 178.85 million bags, up 2% year-on-year. The forecast includes arabica production of 95.52 million bags (-4.7%) and robusta production of 83.33 million bags (+10.9%). The USDA estimates Brazil’s 2025/26 coffee crop at 63 million bags, down 3.1% from the previous year, while Vietnam’s production is expected to rise 6.2% to 30.8 million bags. Global ending stocks are forecast to decline by 5.4% to 20.15 million bags in 2025/26, compared with 21.31 million bags in 2024/25.

Indicator 2025/26 Year-on-Year Change
Global Coffee Production 178.85 million bags +2.0%
Arabica Production 95.52 million bags -4.7%
Robusta Production 83.33 million bags +10.9%
Ending Stocks 20.15 million bags -5.4%

Frequently Asked Questions About Coffee Price Movements

Q: Why did arabica prices decline despite concerns over Brazil harvest delays?

A: Due to the dollar index surging to a 13-month high, triggering long liquidation in futures contracts, combined with forecasts of dry weather in Brazil next week.

Q: How does El Niño affect coffee prices?

A: El Niño could delay flowering rains in Brazil during September-October, potentially damaging the 2026/27 crop and supporting higher prices.

Q: How do Vietnam’s exports influence prices?

A: Rising Vietnamese exports increase robusta supply, which puts downward pressure on prices.

Q: What is the current level of exchange inventories?

A: ICE arabica stocks fell to 394,267 bags (a 27-month low), while robusta stocks jumped to 4,032 lots (a 2.25-month high).

Q: Will prices continue to be volatile?

A: Yes, with continued tension between supportive factors (harvest delays, El Niño concerns, falling inventories) and bearish factors (dollar strength, record crop expectations, rising Vietnamese production).

The coffee market remains caught between immediate bullish factors (harvest delays, falling inventories, El Niño risks) and structural bearish factors (dollar strength, record crop expectations, rising Vietnamese production and exports). The dollar’s surge to a 13-month high adds an additional layer of complexity, making commodities more expensive for holders of other currencies. All eyes remain on weather developments in Brazil and dollar movements to determine the next direction for prices.

Prepared and edited by: Qahwa World – Based on a Barchart report by Rich Asplund (adapted).

All rights reserved. Republication with attribution permitted.

Publication date: June 19, 2026

Coffee Prices Continue to Rise Supported by Brazil Harvest Delays and El Niño Risks

Posted on by Qahwa World

Source: Barchart – Adapted by Qahwa World |
Author: Qahwa World |
Date: June 17, 2026

Coffee Prices Continue to Rise Supported by Brazil Harvest Delays and El Niño Risks

Key Takeaways:

  • Arabica prices rose 2.85% to a two-week high, robusta gained 1.36% to a five-week high.
  • Rainfall expected in Brazil may delay the harvest and reduce immediate supplies.
  • ICE arabica inventories fell to 397,242 bags – the lowest level in seven months.
  • El Niño risks threaten the critical flowering period in Brazil (September-October) and could impact the 2026/27 crop.
  • USDA forecasts a record Brazil 2026/27 crop of 71.9 million bags (+14% y/y).
  • Vietnam’s exports rose 7.9% in the first five months of 2026, with production expected at 29.4 million bags (+6%).
  • Shipping disruptions in the Strait of Hormuz are increasing transport costs and supporting prices.

Coffee prices continued to rise on Tuesday, supported by concerns that persistent rainfall in Brazil could delay the country’s coffee harvest. July Arabica futures gained 2.85%, while July Robusta futures advanced 1.36%. Arabica reached a two-week high, while robusta climbed to its highest level in five weeks.

The rally comes despite expectations of a record Brazilian crop, as the market appears to be focusing on immediate supply-side factors, including weather and declining inventories.

Harvest Delays Raise Supply Concerns

Weather remains a key driver of the market. Forecasting company Vaisala expects moderate to heavy rainfall across Brazil’s major coffee-growing regions this week, potentially slowing harvesting activities and delaying supplies reaching the market. Further supporting prices, ICE-monitored arabica inventories have been trending lower for the past three months. Arabica stocks fell to 397,242 bags on Monday, the lowest level in nearly seven months. Robusta inventories, however, have recovered from a two-year low of 3,631 lots recorded on May 15, rising to 3,991 lots.

Indicator Value Change
July Arabica Futures +2.85% Two-week high
July Robusta Futures +1.36% Five-week high
ICE Arabica Stocks 397,242 bags Seven-month low
ICE Robusta Stocks 3,991 lots Recovered from two-year low

El Niño Risks Loom Over Next Year’s Crop

Market participants are also monitoring the development of an El Niño weather pattern, which could affect Brazil’s next coffee crop. Coffee trader Volcafe has warned that El Niño could delay the arrival of seasonal rains during Brazil’s critical flowering period in September and October, potentially impacting the 2026/27 harvest. The US National Oceanic and Atmospheric Administration (NOAA) estimates a 67% probability of a strong El Niño event this year. Meanwhile, the Japan Meteorological Agency has confirmed that El Niño conditions have developed across the equatorial Pacific. Such weather patterns can trigger droughts, floods, and temperature extremes that may disrupt coffee production in both South America and Asia.

Large Crops Continue to Weigh on the Market Despite Temporary Gains

Despite recent gains, the broader market remains under pressure from expectations of abundant coffee supplies. Earlier this month, arabica futures fell to a 19-month low, while robusta touched a two-month low after forecasts pointed to a record Brazilian crop. On June 3, the USDA’s Foreign Agricultural Service (FAS) projected Brazil’s 2026/27 coffee production at a record 71.9 million bags, up 14% from the previous year. Rabobank also increased its forecast for the global arabica surplus in 2026/27 to 9.5 million bags, up from 7 million bags previously. In addition, Cecafé reported that Brazil’s green coffee exports rose 4.2% year-on-year in May to 2.73 million bags.

Indicator Value Change
USDA Brazil 2026/27 Crop Forecast 71.9 million bags +14%
Rabobank Global Arabica Surplus 9.5 million bags (was 7 million)
Brazil Green Coffee Exports (May) 2.73 million bags +4.2%

Vietnam Expands Exports and Production, Adding Pressure on Prices

Vietnam, the world’s largest robusta producer, continues to increase exports, adding further pressure to prices. According to Vietnam’s National Statistics Office, coffee exports during the first five months of 2026 reached 922,000 metric tons, up 7.9% from the same period a year earlier. Full-year exports in 2025 rose 17.5% to 1.58 million metric tons. Vietnam’s 2025/26 coffee production is also expected to increase by 6% year-on-year to 1.76 million metric tons, equivalent to approximately 29.4 million bags. This increase in production and exports adds further supply to the global market, particularly in the robusta segment.

Shipping Disruptions Support Prices

Geopolitical tensions affecting shipping routes have also contributed to market strength. Disruptions to traffic through the Strait of Hormuz have increased freight rates, insurance premiums, fuel costs, and fertilizer prices, raising costs throughout the coffee supply chain. This geopolitical factor adds an additional layer of support to prices, as these higher costs are passed on to importers, roasters, and ultimately consumers.

Global Production Outlook and Inventories Point to a Delicate Balance

The International Coffee Organization (ICO) reported that global coffee exports during the current marketing year (October–September) totaled 138.66 million bags, slightly down 0.3% from the previous year. Meanwhile, the USDA’s FAS projects global coffee production in 2025/26 to reach a record 178.85 million bags, up 2% year-on-year. The forecast includes arabica production of 95.52 million bags (-4.7%) and robusta production of 83.33 million bags (+10.9%). The USDA estimates Brazil’s 2025/26 coffee crop at 63 million bags, down 3.1% from the previous year, while Vietnam’s production is expected to rise 6.2% to 30.8 million bags. Global ending stocks are forecast to decline by 5.4% to 20.15 million bags in 2025/26, compared with 21.31 million bags in 2024/25, indicating that inventories may remain relatively tight despite rising production.

Indicator 2025/26 Year-on-Year Change
Global Coffee Production 178.85 million bags +2.0%
Arabica Production 95.52 million bags -4.7%
Robusta Production 83.33 million bags +10.9%
Ending Stocks 20.15 million bags -5.4%

Frequently Asked Questions About Coffee Price Movements

Q: Why are coffee prices rising despite expectations of a record crop in Brazil?

A: Because of immediate factors such as harvest delays due to rain, inventories falling to a seven-month low, and concerns about El Niño impact on next year’s crop.

Q: How does El Niño affect coffee prices?

A: El Niño could delay flowering rains in Brazil during September-October, potentially damaging the 2026/27 crop and supporting higher prices.

Q: How do Vietnam’s exports influence prices?

A: Rising Vietnamese exports increase robusta supply, which puts downward pressure on prices.

Q: What is the current level of exchange inventories?

A: ICE arabica stocks fell to 397,242 bags (a seven-month low), while robusta stocks rose to 3,991 lots from a two-year low.

Q: Will prices continue to rise?

A: It depends on weather developments in Brazil, El Niño risks, ongoing shipping disruptions, and the scale of the expected surplus from the record crop.

The coffee market remains caught between immediate bullish factors (harvest delays, falling inventories, El Niño risks, shipping disruptions) and structural bearish factors (record crop expectations, rising Vietnamese production and exports). All eyes remain on weather developments in Brazil to determine the next direction for prices.

Prepared and edited by: Qahwa World – Based on a Barchart report.

All rights reserved. Republication with attribution permitted.

Publication date: June 17, 2026

International Coffee Organization Releases Coffee Market Report for May 2026

Posted on by Qahwa World

Source: International Coffee Organization (ICO) – May 2026 Report |
Author: Qahwa World |
Date: June 13, 2026

International Coffee Organization Releases Coffee Market Report for May 2026

Key Takeaways:

  • The ICO Composite Indicator Price (I‑CIP) averaged 256.05 US cents/lb in May 2026, down 3.8% from April.
  • Brazilian Naturals fell 6.4% to 293.73 US cents/lb, while Robustas rose 1.1% to 166.51 US cents/lb.
  • ICE‑certified Arabica stocks fell 13.5% to 0.48 million bags – a multi‑month low.
  • CONAB raised its Brazil 2026/27 production forecast to a record 66.7 million bags, with Arabica up 28% y/y.
  • Global green bean exports declined 1.9% in April 2026 to 10.51 million bags, while Robusta exports rose 11.2%.
  • Vietnam’s April 2026 exports jumped 12.1% to 3.41 million bags – the country’s largest April volume on record.
  • The New York–London futures arbitrage narrowed 13.1% to 116.39 US cents/lb, reflecting improved Brazil arabica prospects.

The International Coffee Organization (ICO) published its monthly coffee market report for May 2026, showing a continued downward drift in prices as expectations of ample supply strengthened. The ICO Composite Indicator Price (I‑CIP) averaged 256.05 US cents/lb in May 2026, a 3.8% decrease from April 2026. The market continued to react to an improved supply outlook, reinforced by CONAB’s reaffirmation of a record outlook for Brazil’s production in crop year 2026/27.

Despite the decline, prices remain relatively elevated by historical standards. The drop reflects growing market expectations of a possible global surplus in coffee year 2026/27, combined with harvest pressure from Brazil and persistent backwardation in financial markets.

Group Indicator Performance: Arabicas Decline, Robustas Edge Up

Colombian Milds averaged 323.45 US cents/lb in May 2026, down 3.3% from April. Other Milds fell 4.8% to 315.42 US cents/lb. Brazilian Naturals dropped 6.4% to 293.73 US cents/lb – the steepest decline among the groups. In contrast, Robustas rose 1.1% to 166.51 US cents/lb.

On the futures markets, New York arabica futures fell 5.8% to 268.18 US cents/lb, while London robusta futures gained 0.8% to 151.79 US cents/lb. The arbitrage between the two futures markets contracted by 13.1% to 116.39 US cents/lb, highlighting in particular the improving prospects for arabica production in Brazil.

Group May 2026 (US cents/lb) Change vs April
ICO Composite 256.05 -3.8%
Colombian Milds 323.45 -3.3%
Other Milds 315.42 -4.8%
Brazilian Naturals 293.73 -6.4%
Robustas 166.51 +1.1%

Certified Stocks at Multi‑Month Lows

ICE‑certified robusta stocks fell 0.1% from April to May 2026, closing the month at 0.64 million bags. US‑certified arabica stocks also declined, dropping 13.5% to 0.48 million bags – the lowest level in months. The continued drawdown in certified stocks suggests persistent market uncertainty, as nearby contract premiums are not yet high enough to incentivize deliveries into certified warehouses.

CONAB Forecast: Record Brazil 2026/27 Crop

In mid‑May, Brazil’s National Supply Company (CONAB) released its second crop survey. It raised the total 2026/27 production forecast by about 0.5 million bags to a record 66.7 million bags. Arabica production was increased by 1.67 million bags to 45.8 million bags (+28% y/y). Robusta production was cut by about 1.2 million bags to 20.9 million bags (still a +0.8% y/y increase). CONAB also reported a 3.9% increase in coffee area to 2.34 million hectares, with yields rising to 34.4 bags per hectare. However, CONAB noted that carry‑over stocks remain low and highlighted continued growth in global demand, which tempered some of the market’s bearish sentiment.

Green Bean Exports: Overall Decline, Robusta Growth

Total global green bean exports reached 10.51 million bags in April 2026, down 1.9% from 10.71 million bags in April 2025. All coffee groups recorded declines except Robustas. Details:

  • Colombian Milds: down 14.0% to 0.78 million bags.
  • Other Milds: down 1.1% to 2.31 million bags.
  • Brazilian Naturals: down 14.8% to 2.91 million bags.
  • Robustas: up 11.2% to 4.50 million bags.

As a result, the Arabicas’ share of total green bean exports for the first seven months of coffee year 2025/26 fell to 60.4%, down from 64.2% in the same period a year earlier.

Group April 2026 (million bags) Change vs April 2025
Colombian Milds 0.78 -14.0%
Other Milds 2.31 -1.1%
Brazilian Naturals 2.91 -14.8%
Robustas 4.50 +11.2%

Regional Performance: Asia & Oceania Lead Growth

Total exports of all forms of coffee (green, soluble, roasted) fell 0.9% to 12.05 million bags in April 2026 compared with 12.17 million bags in April 2025. Regional dynamics were mixed:

  • Asia & Oceania: Up 7.3% to 4.64 million bags, led by Vietnam. Vietnamese exports jumped 12.1% to 3.41 million bags – the country’s largest April export volume on record.
  • Africa: Down 22.1% to 1.54 million bags, driven by sharp declines in Ethiopia and Uganda.
  • South America: Down 1.2% to 3.99 million bags, with Colombia recording its fifth consecutive monthly decline.
  • Caribbean, Mexico & Central America: Up 3.3% to 1.88 million bags, led by Honduras (+23.0%).

Price Volatility and El Niño Risks

The intra‑day volatility of the I‑CIP averaged 8.8% in May 2026, down 0.2 percentage points from April. Volatility for Brazilian Naturals and Robustas also declined, while Colombian Milds volatility increased slightly. On the futures markets, New York arabica volatility stood at 10.2%, and London robusta volatility at 10.1%.

The US National Oceanic and Atmospheric Administration (NOAA) estimates an 82% probability that El Niño conditions will emerge between May and July, with a 67% chance of a “Super El Niño”. Such a pattern could delay Brazil’s September‑October 2026 flowering rains, potentially damaging the 2026/27 crop. However, the impact of El Niño in Brazil is complex – it can be positive or negative depending on region, intensity, and timing.

Frequently Asked Questions About the ICO May 2026 Coffee Market Report

Q: What is the ICO Composite Indicator Price?

A: It is a weighted average of the four ICO group indicator prices (Colombian Milds, Other Milds, Brazilian Naturals, and Robustas).

Q: Why did arabica prices fall while robusta prices rose in May 2026?

A: Arabica fell due to record Brazil crop expectations, while robusta demand remained strong amid Red Sea shipping disruptions.

Q: What do falling certified stocks indicate?

A: They suggest that nearby contract premiums are not high enough to encourage deliveries into warehouses, reflecting persistent market uncertainty despite surplus expectations.

Q: How could El Niño affect coffee prices?

A: A “Super El Niño” could delay flowering rains in Brazil and damage next year’s crop, which would support higher prices. But the effect varies by region.

Q: What is the expected global coffee surplus for 2026/27?

A: CONAB’s record Brazil crop points to a significant surplus, but low carry‑over stocks and strong demand may limit its size.

The global coffee market remains caught between large surplus expectations on one hand, and low inventories, El Niño risks, and supply chain disruptions on the other. The ICO’s May 2026 report confirms that 2026 will be a pivotal year for the world’s coffee balance.

Prepared and edited by: Qahwa World – Based on the International Coffee Organization (ICO) market report for May 2026 (CMR-0526).

All rights reserved. Republication with attribution permitted.

Publication date: June 13, 2026

Coffee Prices Jump as Persistent Rain in Brazil Delays the Coffee Harvest

Posted on by Qahwa World

Source: Barchart (adapted) |
Author: Coffee World |
Date: June 12, 2026

Coffee Prices Jump as Persistent Rain in Brazil Delays the Coffee Harvest

Key Takeaways:

  • July arabica rose 2.17% and July robusta rose 3.19% to one‑week highs.
  • Moderate to heavy rain is forecast across Brazil’s coffee regions this week and may extend into next week.
  • ICE arabica inventories fell to a 6.5‑month low of 402,709 bags.
  • Concerns over a “Super El Niño” that could damage Brazil’s 2026/27 coffee crop are supporting prices.
  • The USDA FAS forecasts a record Brazil 2026/27 crop of 71.9 million bags, up 14% y/y.
  • Vietnam’s coffee exports rose 7.9% in January‑May 2026, adding bearish pressure.
  • The ongoing closure of the Strait of Hormuz continues to disrupt supplies and support prices.

Coffee prices jumped to one‑week highs today amid concerns that persistent rain in Brazil will delay the coffee harvest. July arabica futures rose 2.17%, while July robusta futures gained 3.19%. Forecaster Vaisala said moderate to heavy rainfall is forecast across Brazil’s coffee‑growing regions this week, and the showers could extend into next week.

The rally comes after arabica hit a 19‑month low on Tuesday, driven by expectations of a bumper Brazilian crop. However, the current rains have renewed worries about harvest delays and quality.

Persistent Rain Threatens to Delay Brazil’s Harvest

According to Vaisala, moderate to heavy rain is expected across Brazil’s coffee regions this week, with the potential to continue into next week. This could disrupt harvesting activities that have already begun and affect bean quality. Delayed harvests typically lead to a higher proportion of defective beans and lower overall quality, reducing the supply of high‑grade coffee in the market. As a result, futures prices rose sharply, with short covering amplifying the move.

Exchange Inventories Fall to Multi‑Month Lows

ICE arabica coffee inventories fell to 402,709 bags on Wednesday, a 6.5‑month low. Meanwhile, ICE robusta inventories remained near a two‑year low at 3,713 lots. The decline in inventories supports prices by signaling tight near‑term supplies.

“Super El Niño” Threatens Brazil’s 2026/27 Crop

Concerns are growing that an El Niño weather pattern could hurt Brazil’s coffee crop next year. Coffee trader Commercial said El Niño may delay rains in Brazil during September and October, the period when tree flowering normally occurs, damaging the 2026/27 crop. The US National Oceanic and Atmospheric Administration (NOAA) estimates a 67% probability of a “Super El Niño” this year, which could be the strongest on record. On Wednesday, the Japan Meteorological Agency confirmed that an El Niño pattern has formed across the equatorial Pacific, setting the stage for months of floods, droughts, and temperature fluctuations that could hinder coffee production in Asia and South America.

Source Brazil 2026/27 Crop Forecast (million bags)
USDA FAS 71.9 Coffee Trading Academy 71.4 Marex Group 75.9 Sucafina 75.4 StoneX 75.3

Vietnam Exports and Surplus Forecasts Cap Gains

On the other hand, large surplus expectations still loom. Last Wednesday, the USDA FAS forecast a record Brazil 2026/27 crop of 71.9 million bags, up 14% y/y. Rabobank raised its 2026/27 global arabica surplus estimate to 9.5 million bags from 7.0 million bags previously. Vietnam’s coffee exports rose 7.9% in the first five months of 2026, and its 2025/26 production is projected to climb 6% to 29.4 million bags. These factors limit the upside for prices in the longer term.

Type 2025/26 Forecast (million bags) Year-on-Year Change
Arabica 95.52 -4.7%
Robusta 83.33 +10.9%
Global Total 178.85 +2.0%

Strait of Hormuz Closure Supports Prices

The ongoing closure of the Strait of Hormuz continues to disrupt global coffee supplies, supporting prices. The closure has tightened supplies by raising shipping rates, insurance, fertilizer, and fuel costs, increasing costs for importers and roasters. This geopolitical factor adds another layer of uncertainty to the market.

Frequently Asked Questions About Coffee Price Moves

Q: Why did coffee prices jump today?

A: Because of forecasts for heavy rain in Brazil’s coffee regions, which could delay the harvest and affect quality.

Q: How does El Niño affect coffee prices?

A: El Niño could delay rains in Brazil and damage tree flowering, reducing next year’s crop and supporting higher prices.

Q: How do Vietnam’s exports influence prices?

A: Higher Vietnamese exports increase robusta supply, which tends to cap price gains in the medium term.

Q: What is the current level of exchange inventories?

A: ICE arabica inventories fell to 402,709 bags, a 6.5‑month low; robusta inventories near two‑year lows.

Q: Will prices continue to rise?

A: It depends on weather developments in Brazil, the severity of any El Niño impact, and geopolitical tensions.

The coffee market faces heightened uncertainty. While large surplus expectations remain in the background, current rains, El Niño risks, and Strait of Hormuz disruptions are reshaping the balance. Investors are closely watching weather developments in Brazil and inventory trends.

Prepared and edited by: Coffee World – Based on a Barchart report by Rich Asplund (adapted).

All rights reserved. Republication with attribution permitted.

Publication date: June 12, 2026

Japan Meteorological Agency Confirms El Niño, Lifting Coffee Prices

Posted on by Qahwa World

Source: Barchart (adapted) |
Author: Qahwa World |
Date: June 11, 2026

Japan Meteorological Agency Confirms El Niño, Lifting Coffee Prices

Key Takeaways:

  • July arabica closed up 1.64% and July robusta up 1.85% after Japan confirmed El Niño formation.
  • El Niño could bring months of floods, droughts, and temperature swings, threatening coffee production in Asia and South America.
  • Arabica had fallen to a 19-month low on Tuesday amid forecasts of a bumper Brazil crop.
  • USDA FAS forecasts a record Brazil 2026/27 crop of 71.9 million bags, up 14% year on year.
  • Vietnam’s coffee exports rose 7.9% in January-May 2026, pressuring robusta.
  • ICE arabica inventories fell to a 6.5-month low of 402,709 bags on Wednesday.
  • NOAA estimates a 67% chance of a “Super El Niño” that could be the strongest on record.

Coffee prices settled sharply higher on Wednesday as short covering emerged after the Japan Meteorological Agency confirmed an El Niño weather pattern had formed across the equatorial Pacific. This sets the stage for months of floods, droughts, and temperature fluctuations later this year that could hinder coffee production in Asia and South America.

July arabica coffee closed up 1.64%, and July robusta closed up 1.85%. The rally followed Tuesday’s declines, when arabica fell to a 19-month low and robusta slid to a two-month low amid expectations of a bumper Brazilian crop this year.

Record Brazil Crop Forecast Still Weighs on Prices

Last Wednesday, the USDA Foreign Agricultural Service (FAS) forecast a record 2026/27 Brazil coffee crop of 71.9 million bags, up 14% year on year. Rabobank also raised its 2026/27 global arabica surplus estimate to 9.5 million bags from 7.0 million bags previously.

On May 7, the Coffee Trading Academy projected Brazil’s 2026/27 harvest would increase by 12% to 71.4 million bags. On March 19, Marex Group projected a record 75.9 million bags, surpassing Sucafina’s 75.4 million bag forecast. StoneX raised its estimate to 75.3 million bags on March 12. StoneX projects the 2026 global coffee surplus will expand to 10 million bags, up from 1.8 million bags in 2025 – the largest surplus in six years.

Source Brazil 2026/27 Crop Forecast (million bags)
USDA FAS 71.9
Coffee Trading Academy 71.4
Marex Group 75.9
Sucafina 75.4
StoneX 75.3

Strong Vietnam Exports Pressure Robusta; Inventories Fall

Last Tuesday, Vietnam’s National Statistics Office reported that the country’s coffee exports from January to May 2026 rose 7.9% year on year to 922,000 metric tons. Vietnam’s 2025 coffee exports jumped 17.5% to 1.58 million metric tons. Vietnam’s 2025/26 coffee production is projected to climb 6% to a four-year high of 1.76 million metric tons (29.4 million bags).

In contrast, ICE arabica coffee inventories fell to a 6.5-month low of 402,709 bags on Wednesday. ICE robusta inventories fell to a two-year low of 3,631 lots on May 15 and are now slightly higher at 3,713 lots. The decline in inventories provides some support to prices.

El Niño Confirmation Raises Concerns; Strait of Hormuz Disruptions Persist

The Japan Meteorological Agency confirmed that an El Niño weather pattern has formed across the equatorial Pacific. This could bring months of floods, droughts, and temperature swings that may hinder coffee production in Asia and South America. Coffee trader Commercial stated that El Niño may delay rains in Brazil during September and October, when tree flowering normally occurs, hurting the 2026/27 crop.

The US National Oceanic and Atmospheric Administration (NOAA) estimates a 67% probability of a “Super El Niño” this year, which could be the strongest on record.

Furthermore, the ongoing closure of the Strait of Hormuz continues to disrupt global coffee supplies and is bullish for prices. The closure has tightened supplies by raising shipping rates, insurance, fertilizer, and fuel costs, increasing costs for importers and roasters.

Mixed Outlook for Global Production and Stocks

The International Coffee Organization (ICO) reported on November 7 that global coffee exports for the current marketing year (October to September) fell 0.3% to 138.658 million bags. The USDA FAS bi-annual report on December 18 projected that 2025/26 world coffee production will increase 2.0% to a record 178.848 million bags. Arabica production is expected to fall 4.7% to 95.515 million bags, while robusta production rises 10.9% to 83.333 million bags.

The USDA FAS also forecasts that 2025/26 ending stocks will fall 5.4% to 20.148 million bags, down from 21.307 million bags in 2024/25. This decline reflects strong global demand and persistent supply chain pressures.

Type 2025/26 Forecast (million bags) Year-on-Year Change
Arabica 95.52 -4.7%
Robusta 83.33 +10.9%
Global Total 178.85 +2.0%

Frequently Asked Questions About El Niño and Coffee Prices

Q: Why did coffee prices rise after the El Niño confirmation?

A: Because El Niño can cause floods and droughts that hinder coffee production in Asia and South America, reducing supply and lifting prices.

Q: What is the probability of a “Super El Niño” this year?

A: NOAA estimates a 67% chance of a Super El Niño, which could be the strongest on record.

Q: How do Vietnam’s exports affect robusta prices?

A: Higher Vietnamese exports increase global robusta supply, putting downward pressure on prices.

Q: What is the current level of ICE arabica inventories?

A: They fell to a 6.5-month low of 402,709 bags on Wednesday.

Q: What is the global coffee surplus forecast for 2026?

A: StoneX expects a surplus of 10 million bags, the largest in six years, but El Niño could alter this outlook.

The coffee market remains caught between large surplus expectations on one hand and climate risks from El Niño plus geopolitical tensions in the Strait of Hormuz on the other. Confirmation of El Niño adds a new layer of uncertainty and could reshape market balances in the coming months.

Prepared and edited by: Qahwa World – Based on a Barchart report by Rich Asplund (adapted).

All rights reserved. Republication with attribution permitted.

Publication date: June 11, 2026

US Coffee Consumption 2026 by the Numbers

Posted on by Qahwa World

Source: National Coffee Association (NCA) |
Author: Qahwa World |
Date: June 6, 2026

US Coffee Consumption 2026 by the Numbers: The Rise of Specialty Coffee and What It Means for Global Markets

Key Numbers:

  • 66% of American adults drank coffee yesterday – more than any other beverage including water.
  • 47% drank specialty coffee daily, surpassing traditional coffee (42%).
  • 58% had specialty coffee in the past week, a 10-point increase since 2021.
  • 45% of Americans consumed espresso-based beverages weekly (lattes, cappuccinos, espressos).
  • Age group 25-39 leads consumption: 69% weekly for specialty coffee.
  • Hispanic Americans are the highest specialty coffee consumers (67% weekly).
  • Northeast and West regions have the highest consumption (64% and 61% weekly).
  • Medium roast is the most popular (58%), followed by dark (39%) and light (13%).

The 2026 National Coffee Data Trends report, released by the National Coffee Association (NCA), confirms that coffee remains America’s favorite beverage. 66% of adults drank coffee yesterday, ahead of tap or bottled water. However, the real story lies in a deep shift within the US market.

For the first time, specialty coffee is achieving sustainable growth over traditional coffee. This shift reflects changing consumer tastes and carries major implications for global production, arabica and robusta futures, roasting strategies, and distribution worldwide. In this report, we present the most revealing numbers and analyze what they mean for the global coffee market.

1. Daily and Weekly Consumption Basics

January 2026 data shows specialty coffee outpacing traditional coffee in daily consumption for the first time on a broad scale. Daily specialty coffee penetration reached 47%, versus 42% for traditional coffee. On a weekly basis, 58% of Americans drank specialty coffee, compared to 62% for traditional coffee – a very close gap.

Coffee Type Daily Penetration Weekly Penetration
Specialty Coffee 47% 58%
Traditional Coffee 42% 62%
Espresso Based Beverages (EBBs) 29% 45%
Cold Specialty Beverages (N-EBBs)* 17% 27%

* Includes cold brew, frozen blended coffee, and nitro coffee.

Since 2021, weekly specialty coffee consumption has increased by 10 percentage points (from 48% to 58%). Meanwhile, weekly traditional coffee consumption has remained stable at around 62%. This means nearly all growth in the US coffee market comes from the specialty segment.

2. Who Drinks Specialty Coffee? Demographic Profile

By age: The 25-39 age group is the strongest driver. 69% of them drank specialty coffee in the past week, versus only 46% of those aged 60+. Moreover, 60% of the 25-39 group consumed espresso beverages, and 40% drank cold specialty drinks. Young adults (18-24) prefer specialty (50%) over traditional (40%), signaling a lasting generational shift.

Age Group Specialty (Weekly) Espresso Beverages Cold Specialty
18-24 50% 38% 33%
25-39 69% 60% 40%
40-59 60% 47% 27%
60+ 46% 30% 13%

By ethnicity: Hispanic Americans are the highest specialty coffee consumers (67% weekly), followed by Asian Americans (64%). African Americans (57%) and Caucasian Americans (56%) follow. Hispanic Americans also lead in espresso beverages (57%) and cold specialty drinks (39%).

By region: The Northeast leads with 64% weekly specialty consumption, followed by the West (61%), then the South (57%), and finally the Midwest (49%).

3. How Do Americans Drink Their Specialty Coffee?

Temperature: 43% prefer hot specialty coffee, while 32% consume it cold. In contrast, traditional coffee is 54% hot and only 13% cold. Specialty coffee thus dominates the cold beverage market year-round, even in January.

Roast level: Medium roast is the most popular (58%), followed by dark roast (39%), then light roast (13%). This confirms a preference for balanced, classic flavors.

Additives (sweeteners and whiteners): 59% of specialty coffee drinkers use sweeteners or flavored syrup. 58% use whiteners (milk, cream, or milk alternatives). The 25-39 age group records the highest sweetener usage (70%). Hispanic Americans are more likely to add white sugar and honey.

Out-of-home preparation: 36% of specialty coffee drinkers buy their coffee away from home (cafés, restaurants, workplaces), compared to only 23% of traditional drinkers. This highlights the importance of the hospitality and café sector for specialty coffee growth.

4. What Do These Numbers Mean for the Global Coffee Market?

The US shift to specialty coffee is not just a local taste change; it is a strong signal for global markets.

1. Demand for high-quality arabica will increase: Specialty coffee’s heavy reliance on arabica puts pressure on producing countries to increase output while maintaining quality. However, a record Brazil 2026/27 crop (71.9 million bags) may create a temporary surplus, but strong US demand will absorb much of it.

2. Arabica prices may find support despite surplus: Prices usually fall when supply rises. Yet 58% of Americans drinking specialty coffee weekly means that any production increase may be met by rising consumption, limiting price collapse. Additionally, tight spot supplies (falling exchange inventories) support prices in the short term.

3. Robusta market faces pressure: As traditional coffee’s share declines, Vietnam increases its robusta exports. This could lead to a robusta surplus and downward pressure on prices. Roasters will need to find new uses for robusta.

4. Flavor innovation and new formats are essential: 35% of specialty coffee drinkers consider flavor part of the definition of “specialty coffee.” The strong preference for sweet flavors forces producers to develop blends that meet these tastes. Meanwhile, the popularity of cold drinks requires investment in chilled distribution channels.

5. Demographic shifts reshape global marketing: Specialty coffee’s concentration among 25-39 year olds and Hispanic Americans means brands must redirect their campaigns and sales channels. Higher out-of-home consumption (36%) benefits global café chains.

6. Supply chain and climate challenges remain: With El Niño and Strait of Hormuz disruptions persisting, specialty coffee supply chains become more fragile. Prices may experience sharp volatility despite a theoretical surplus.

5. What Does This Mean for the Arab World, Especially the Gulf?

The Gulf market is experiencing massive growth in specialty coffee. US data confirms this is a global trend. For coffee-importing Arab countries, this means:

  • Higher prices: If strong US demand continues, arabica prices may rise globally, increasing import costs for local roasters and cafés.
  • Opportunity for differentiation: Arab cafés can play on distinctive flavors (spice, floral, fruit) that US specialty drinkers are open to. This opens doors for collaboration with US roasters or exporting innovative Arab blends.
  • Need for investment in education and training: To meet global quality standards, the Gulf coffee sector must strengthen Q Grader and sensory analysis programs, just as labs like Kanamori Coffee Lab do in Japan.

Frequently Asked Questions About US Coffee Consumption 2026

Q: What percentage of Americans drink coffee daily compared to other beverages?

A: 66% drink coffee daily, making it the most consumed beverage ahead of tap or bottled water.

Q: Has specialty coffee truly overtaken traditional coffee?

A: In daily consumption, yes: 47% specialty vs. 42% traditional. Weekly, traditional still leads slightly (62% vs. 58%).

Q: Which age group consumes the most specialty coffee?

A: The 25-39 age group, at 69% weekly.

Q: What is the most popular roast in America?

A: Medium roast (58%), followed by dark (39%), then light (13%).

Q: How do these numbers affect global coffee prices?

A: Strong US demand for arabica supports prices, while Brazil’s record crop may create temporary surplus. Robusta prices trend downward due to Vietnam exports.

Q: Which flavors do US specialty coffee drinkers prefer most?

A: Sweet flavors: chocolate (85%), caramel and brown sugar (78%), vanilla (79%).

The 2026 data shows that specialty coffee is no longer a luxury but the backbone of the US coffee market. This sends clear messages to producers, roasters, and investors worldwide: quality, innovation, and understanding demographic shifts are the keys to success in the coming decade.

Prepared and edited by: Qahwa World – Based on the National Coffee Association’s 2026 National Coffee Data Trends Specialty Coffee Report.

All rights reserved. Republication with attribution permitted.

Publication date: June 6, 2026

Brazil Coffee Output to Reach Record 71.9M Bags

Posted on by Qahwa World

Author: Qahwa World – Brasília
Source: USDA Foreign Agricultural Service – Report BR2026-0025
Date: June 1, 2026

Brazil Coffee Output to Reach Record 71.9M Bags

Executive Summary

  • Brazil’s 2026/27 coffee production is forecast at 71.9 million 60‑kg bags, a 14% increase over the previous season.
  • Arabica output is expected to surge 25% to 47.5 million bags, ending five years of low harvests.
  • Robusta (conilon) production is forecast at 24.4 million bags, a slight decline from 25 million bags due to cooler weather and excess rain in some regions.
  • Exports for 2026/27 are projected to jump 30% to 49 million bags, supported by the record crop.
  • However, low stocks and fears of an El Niño event are making exporters cautious and holding back deals.
  • Domestic consumption remains stable at 22.39 million bags, with a 0.5% annual increase.
  • The “Zero Crop, 100% Crop” management technique is helping farmers optimize yields and reduce costs.

Brazil is set to produce a record 71.9 million 60‑kg bags of coffee in the 2026/27 season. This is a 14% increase over the previous cycle. The outlook is especially bright for arabica coffee.

Optimal weather in major growing regions has driven the recovery. The record crop follows five years of low arabica production caused by adverse conditions.

Exports are expected to surge 30% to 49 million bags. However, exporters remain cautious. They are holding back on deals because of low stocks and uncertainties about a possible El Niño event.

El Niño could affect the end of the current harvest and the 2027/28 cycle. These factors are strongly influencing coffee prices in the Brazilian market.

Production Outlook

The positive biennial cycle is a key driver. Arabica trees naturally produce more in alternating years. This year is a high‑yield year.

Favorable weather conditions and rising global prices have also encouraged farmers to expand their coffee areas. Technology has enabled higher planting density per hectare.

As a result, total coffee production is forecast at 71.9 million 60‑kg bags. This is a 14% increase from the 63 million bags estimated for 2025/26.

The National Supply Company (CONAB) projects a slightly lower figure of 66.7 million bags. The Brazilian Institute of Geography and Statistics (IBGE) projects 65.1 million bags.

Both official agencies use different methodologies. They have historically provided lower estimates than the USDA.

Arabica and Robusta Performance

Arabica production is forecast to reach 47.5 million bags. This is a 25% increase over the previous cycle. The growth is driven by the positive biennial cycle and expanded cultivated area.

Technological improvements in crop management also played a role. Milder temperatures before flowering supported good crop development.

In contrast, robusta (conilon) production is forecast at 24.4 million bags. This is a slight decline from the 25 million bags estimated for 2025/26.

Colder weather and periods of excessive rainfall reduced yields in some main producing regions. The strong growth of the 2025/26 harvest also made it difficult to sustain the same level of production.

Producers are increasingly worried about climate change. Many are adjusting their practices, seeking more shaded areas, and looking for resilient varieties.

Regional Performance

Minas Gerais remains Brazil’s largest coffee‑producing state. It is forecast to harvest 34.1 million bags in 2026/27, up from 26.7 million in 2025/26.

The increase is due to the positive biennial cycle and better rainfall distribution. Rainfall was especially good before flowering and through March.

Espírito Santo, the second‑largest producer, is forecast at 21.4 million bags. Arabica production there is expected at 4.4 million bags, while robusta accounts for 17 million bags.

São Paulo, which grows only arabica, saw growth of more than 15% over the previous cycle, despite varied weather conditions.

Bahia has now become the second‑largest robusta producer, surpassing Rondônia. Its growth comes from advanced technology and high‑performance irrigated areas.

Rondônia is expected to see a 19% increase in robusta production. Favorable weather and the renewal of crops with higher‑yielding clonal plants are the main reasons.

Table 1: Brazilian Coffee Production by State (million 60‑kg bags)

State 2025/26 2026/27 Change
Minas Gerais 26.7 34.1 +27.7%
Espírito Santo 20.9 21.4 +2.4%
São Paulo 4.8 5.5 +14.6%
Bahia 4.7 5.2 +10.6%
Rondônia 2.3 2.8 +21.7%

Prices and Production Costs

Arabica prices rose sharply at the end of 2025 due to limited supply. However, prices started to decrease with the forecast of a larger harvest.

In April 2026, arabica coffee averaged BRL 1,811.87 (USD 360.03) per 60‑kg bag. This was a 5% drop from March and a 28% drop from April 2024.

Robusta prices fell even more. In April 2026, robusta traded at BRL 917.05 (USD 182.26). That was a 10% monthly drop and a 46% drop from April 2025.

Fears of an El Niño event have dampened sales activity. Many producers who were liquidating their remaining stocks are now holding back.

Production costs remain high. Fertilizer prices have risen, and freight costs have increased due to higher diesel prices. Diesel climbed about 24% in March 2026.

To cope, many farmers are adopting the “Zero Crop, 100% Crop” technique. This method divides farms into two plots and alternates skeleton pruning.

As a result, farmers focus only on the plot in its high‑yield phase. The system also increases organic matter and reduces fertilizer needs.

Domestic Consumption and Exports

Brazil’s domestic coffee consumption is forecast at 22.39 million bags for 2026/27. This is a slight 0.5% increase over the previous year.

Consumption declined by more than 2% in 2025 due to high prices. However, it recovered in early 2026 as supermarket prices dropped.

In the first four months of 2026, consumption rose 2% compared to the same period in 2025. The average Brazilian drinks about 3.8 cups of coffee per day.

Exports for 2026/27 are forecast to jump 30% to 49 million bags. This is based on the record harvest. However, low stocks have prevented even higher volumes.

Between January and April 2026, Brazil exported 11.5 million bags, a 24% decrease from the same period in 2025. April exports increased 1.2%, signaling a gradual recovery.

Germany remains the top buyer of Brazilian coffee, followed by the United States, Italy, Japan, and Belgium. The United States holds over 30% of the market share for Brazilian coffee imports.

Specialty coffees accounted for almost 18% of total exports in early 2026, though that volume was 36% lower than the same period in 2025.

Policy and Minimum Prices

The government has allocated BRL 7.37 billion for the 2026/27 Coffee Economy Defense Fund (FUNCAFE). The fund supports crop management, marketing financing, and working capital.

Minimum guaranteed prices for the 2026/27 harvest have been increased. Arabica now has a minimum price of BRL 792.53 per 60‑kg bag, a 20% rise from the previous season.

Robusta’s minimum price was set at BRL 556.97 per bag, a 12% increase. These prices are valid from April 2026 through March 2027.

Frequently Asked Questions

How much coffee will Brazil produce in 2026/27?

Production is forecast at 71.9 million 60‑kg bags, a 14% increase over the previous season.

Why is arabica production expected to surge?

The positive biennial cycle, expanded planted area, technological advances, and favorable weather are the main drivers.

Which Brazilian state produces the most coffee?

Minas Gerais is the largest producer, forecast at 34.1 million bags in 2026/27.

How will El Niño affect Brazilian coffee?

There is a 60% chance of El Niño between May and July 2026. It could negatively impact the 2027/28 harvest through higher temperatures and altered rainfall.

What is the “Zero Crop, 100% Crop” technique?

It is a management method that divides a farm into two plots and alternates skeleton pruning, allowing farmers to focus on high‑yield areas and reduce costs.

What are the main export destinations for Brazilian coffee?

Germany, the United States, Italy, Japan, and Belgium are the top buyers.

Author: Qahwa World – Brasília | Source: USDA Foreign Agricultural Service – Report BR2026-0025 | Date: June 1, 2026

Climate Resilient Coffee: Excelsa and Liberica Offer Hope

Posted on by Qahwa World
Author: Qahwa World
Source: Mongabay (Meena Menon)
Date: June 1, 2026

Climate Resilient Coffee: Excelsa and Liberica Offer Hope

Executive Summary:

  • Mongabay published this story. Arabica and Robusta face growing threats from rising temperatures and erratic rainfall.
  • Lesser known coffee species like Excelsa and Liberica are gaining attention for their resilience and adaptability.
  • British planter Colonel Benson introduced Excelsa to India in the 1800s, but growers never commercialised it widely.
  • In 2025, the South India Coffee Company sold over four tonnes of Excelsa. Demand for saplings is now rising.
  • Researchers at Kew Gardens are studying underutilised species. They have proposed a new hybrid called Libex.
  • Ugandan farmers have grown hundreds of acres of Excelsa since the early 2000s as a climate adaptation.
  • For a sustainable future, the coffee industry must diversify by blending traditional and alternative species.

Mongabay published this story about climate resilient coffee. Rising temperatures and erratic rainfall increasingly threaten the two dominant coffee species, Arabica and Robusta. Pest pressures add to their vulnerability. Consequently, researchers and farmers are turning to lesser known species such as Excelsa and Liberica. These forgotten plants offer new hope for the industry.

Excelsa Gains New Relevance

Excelsa (Coffea dewevrei) grows naturally in parts of Tropical Africa and Southeast Asia. In India, farmers traditionally planted it as a boundary marker or for shade. However, they never commercialised it widely. According to an unpublished paper, a British planter named Colonel Benson introduced Excelsa to India in the late 1800s. He saw it as an alternative to Arabica after pest outbreaks. Nevertheless, its height, which can reach fifteen metres, made estate management impractical.

Today, climate change is prompting a revaluation. Akshay Dashrath, co founder of the South India Coffee Company, maintains 60 year old Excelsa trees on his estate in Karnataka. Interestingly, his grandfather used to drink only Excelsa at home. In 2024 and 2025, the company began revaluating Excelsa across five estates. As a result, they sold over four tonnes of green coffee in 2025. For 2026, they estimate sales will reach five tonnes.

Indian Growers Face Climate Instability

Across India’s coffee growing regions, farmers report increasing climate instability. Kerehaklu Estate in Karnataka has grown Excelsa and Liberica since 1953. Pranoy Thipaiah, the managing partner, told Mongabay that rainfall has become longer and more intense. He also noted that plants’ biological clocks have shifted. Pest pressure has increased as well. Excelsa and Liberica, he explained, handle climate variations better than traditional species. Their long gestation period means harvest occurs after the unseasonal rains pass. Thipaiah is now expanding his trials. He has seven different varieties from Vietnam growing in his nursery. Next year, he plans to transplant them into the main estate.

Global Research on Resilient Species

The search for climate resilient coffee extends far beyond India. Researchers have identified 133 different coffee species worldwide. Aaron Davis of the Royal Botanic Gardens, Kew, told Mongabay that Arabica and Robusta may soon lose their dominance. Arabica requires a cool tropical climate with distinct dry periods. Robusta needs warmth and moisture but cannot tolerate drought. Therefore, neither species can survive the coming changes. Davis advocates for diversification. “We need a portfolio of coffee crop species to adapt to altered climates,” he stated.

Excelsa is already scaling up in Uganda and Vietnam. Farmers there have grown hundreds of acres since the early 2000s. Kiwuka Catherine, a Ugandan research officer, explained that smallholders and large farmers are adopting Excelsa as a climate adaptation. At least 200 farms in Uganda and several in India, Vietnam, and South Sudan now produce Excelsa for export. This trend shows no signs of slowing.

New Hybrids and Future Possibilities

Species Climate Resilience Current Status
Arabica Low, heat sensitive Dominant but vulnerable
Robusta Moderate, not drought tolerant Widely grown, under pressure
Excelsa High, heat and drought tolerant Gaining commercial interest
Liberica High, adaptable Under research
Libex (hybrid) Very high, disease resistant Proposed new hybrid

Researchers have also investigated a hybrid between Liberica and Excelsa. They named it Coffea X libex, or Libex coffee. This hybrid resists heat, excess moisture, and disease effectively. According to Dashrath, this finding could prove crucial for the future of coffee. Hybrids offer a sustainable option for growers facing unpredictable weather. In India, Excelsa is slowly moving from obscurity into the mainstream. SICC has received requests for more than 4,000 saplings for 2026. Davis believes Ugandan Excelsa could appear in supermarkets within a decade. For a sustainable future, the coffee industry must embrace diversification, regenerative agriculture, and multiple alternative species.

Frequently Asked Questions (FAQ)

1. Why are Arabica and Robusta vulnerable to climate change?

Temperatures above 30°C reduce yields. Arabica cannot tolerate heat, while Robusta cannot handle drought. Changing rainfall patterns and pests add more stress.

2. What exactly is Excelsa coffee?

Excelsa (Coffea dewevrei) is a lesser known coffee species native to Africa and Southeast Asia. It grows tall and shows strong resistance to heat and drought.

3. Where can farmers grow Excelsa today?

Growers cultivate Excelsa in India, Uganda, and Vietnam. Ugandan farmers have grown hundreds of acres since the early 2000s as a climate adaptation.

4. What is Libex coffee?

Libex (Coffea X libex) is a hybrid between Liberica and Excelsa. It demonstrates strong resistance to heat, moisture stress, and disease.

5. Can consumers buy Excelsa coffee now?

Yes, but only in small quantities. In India, producers sold over four tonnes in 2025. Ugandan Excelsa may soon reach supermarket shelves.

6. What does the future of coffee look like?

Diversification. Growers will need a portfolio of species including Excelsa, Liberica, Stenophylla, and hybrids like Libex alongside improved Arabica and Robusta.

Qahwa World – Mongabay published this story. Reporting by Meena Menon.
Published: June 1, 2026

Coffee Prices Fall on Forecasts for Dry Weather in Brazil

Posted on by Qahwa World
Author: Qahwa World
Source: Barchart (Rich Asplund)
Date: May 29, 2026

Coffee Prices Fall on Forecasts for Dry Weather in Brazil

Executive Summary:

  • July arabica coffee futures closed down 2.70% on dry weather forecasts for Brazil, allowing the harvest to resume after rain delays.
  • July robusta coffee fell 2.14% amid improved global supply outlook and rising Vietnam exports.
  • Brazil’s 2026/27 coffee harvest is projected to increase 12% to 71.4 million bags, with some forecasts as high as 75.9 million bags.
  • StoneX expects the 2026 global coffee surplus to reach 10 million bags, the largest in six years.
  • Vietnam coffee exports rose 15.8% in January-April 2026 to 810,000 metric tons.
  • ICE arabica inventories fell to a 3.25-month low of 440,785 bags, supporting prices.
  • El Niño risks and dry conditions in Vietnam remain supportive for prices, while the US dollar weakness added support.

Coffee prices retreated sharply on Thursday after updated weather forecasts called for dry conditions next week in Brazil’s coffee growing regions.

The dry weather will allow the coffee harvest to resume after being delayed this week by heavy rains. July arabica coffee futures closed down 2.70%, while July robusta coffee fell 2.14%.

Brazil Crop Outlook and Global Surplus

Coffee prices have trended lower over the past month, with arabica falling to a one and a half year low last Tuesday amid an improved global supply outlook.

On May 7, the Coffee Trading Academy projected Brazil’s 2026/27 coffee harvest would increase 12% year on year to 71.4 million bags.

On March 19, Marex Group projected a record Brazilian crop of 75.9 million bags, surpassing Sucafina’s forecast of 75.4 million bags.

On March 12, StoneX raised its estimate to a record 75.3 million bags. StoneX also projected the 2026 global coffee surplus would expand to 10 million bags from 1.8 million bags in 2025, the largest surplus in six years.

Vietnam Exports and Inventory Trends

Soaring coffee exports from Vietnam, the world’s largest robusta producer, are bearish for robusta prices.

On May 9, Vietnam’s National Statistics Office reported that the country’s coffee exports in the first four months of 2026 rose 15.8% year on year to 810,000 metric tons.

Vietnam’s 2025 coffee exports jumped 17.5% to 1.58 million metric tons. Production for the 2025/26 season is projected to climb 6% to a four year high of 1.76 million metric tons, equivalent to 29.4 million bags.

ICE coffee inventories have trended lower over the past two months, which typically supports prices. ICE arabica coffee inventories fell to a 3.25-month low of 440,785 bags on Thursday.

ICE robusta inventories fell to a two year low of 3,631 lots on May 15, but recovered to a six week high of 3,968 lots last Friday.

Weather Risks and Other Factors

Global weather risks remain supportive for coffee prices. Excessive dryness in Vietnam is raising concerns about the robusta coffee crop.

Weather forecaster Vaisala said recent showers in Vietnam’s Central Highlands have been spotty, and more rain is needed to aid cherry growth.

Concerns that an El Niño weather pattern could hurt Brazil’s coffee crop next year are also supportive for prices.

Coffee trader Commercial said El Niño may delay rains in Brazil during September and October, when tree flowering normally occurs, potentially hurting the 2026/27 crop.

NOAA estimates an 82% probability of El Niño between May and July, with a 67% chance of a Super El Niño.

Smaller exports from Brazil are supportive of coffee prices.

On May 12, Cecafe reported that Brazil’s April green coffee exports fell 1.3% year on year to 2.76 million bags.

The ongoing closure of the Strait of Hormuz has disrupted global coffee supplies, increasing shipping rates, insurance, and fuel costs, which is bullish for prices.

USDA Production Forecasts

Indicator 2025/26 Forecast
World coffee production 178.848 million bags (+2.0% record)
Arabica production 95.515 million bags (-4.7%)
Robusta production 83.333 million bags (+10.9%)
Brazil production 63 million bags (-3.1%)
Vietnam production 30.8 million bags (+6.2%, 4-year high)
Ending stocks 20.148 million bags (-5.4%)

The USDA’s Foreign Agriculture Service bi-annual report of December 18 projected world coffee production in 2025/26 would increase 2.0% to a record 178.848 million bags.

Arabica production is expected to decrease 4.7% to 95.515 million bags, while robusta production is forecast to rise 10.9% to 83.333 million bags.

The USDA also forecast Brazil’s coffee production to decline 3.1% to 63 million bags, while Vietnam’s output would rise 6.2% to a four year high of 30.8 million bags.

Ending stocks are projected to fall 5.4% to 20.148 million bags.

Frequently Asked Questions (FAQ)

1. Why did coffee prices fall on Thursday?

Prices fell due to forecasts of dry weather in Brazil, allowing the coffee harvest to resume after being delayed by heavy rains.

2. How much did arabica and robusta drop?

July arabica fell 2.70%, and July robusta fell 2.14%.

3. What is the projected Brazilian coffee crop for 2026/27?

The Coffee Trading Academy projects 71.4 million bags, while Marex Group and StoneX project record crops above 75 million bags.

4. How much did Vietnam’s coffee exports increase?

Exports rose 15.8% in January-April 2026 to 810,000 metric tons.

5. What is the expected global coffee surplus for 2026?

StoneX projects a surplus of 10 million bags, the largest in six years.

6. How does El Niño affect coffee prices?

El Niño could delay rains in Brazil during the flowering season, potentially reducing the 2026/27 crop, which supports prices.

Qahwa World – Based on Barchart commodity bulletin by Rich Asplund.
Published: May 29, 2026

Coffee Prices Rise on Weather Concerns

Posted on by Qahwa World
Author: Qahwa World
Source: Barchart
Date: May 27, 2026

Coffee Prices Rise on Weather Concerns

Executive Summary:

  • July arabica coffee futures closed up 0.61 percent on Tuesday, while robusta gained 1.82 percent.
  • Dry and uneven rains in Vietnam’s Central Highlands raised concerns about robusta cherry development.
  • El Niño could delay Brazil’s September-October rains, threatening the 2026/27 flowering season.
  • NOAA estimates 82% chance of El Niño from May to July, with 67% chance of a Super El Niño.
  • Vietnam coffee exports rose 15.8% in Jan-Apr 2026 to 810,000 metric tons.
  • ICE robusta inventories fell to a two-year low before recovering slightly to 3,968 lots.
  • Brazil’s April green coffee exports declined 1.3% to 2.76 million bags.

Coffee prices moved higher on Tuesday, reaching one week highs as weather risks in key producing countries raised concerns about future supply.

July arabica coffee futures closed up 0.61 percent, while July ICE robusta coffee futures gained 1.82 percent.

Robusta prices climbed sharply due to continued dry conditions in Vietnam, the world’s largest robusta producer.

According to weather forecaster Vaisala, recent rainfall in Vietnam’s Central Highlands, the country’s main coffee growing region, has been uneven. Additional rain is needed to support cherry development.

El Niño Risks in Brazil

Concerns over a possible El Niño weather pattern in Brazil also supported prices. Coffee trader Commercial warned that El Niño could delay seasonal rains in Brazil during September and October, the critical flowering period for coffee trees, potentially affecting the country’s 2026/27 crop.

The US National Oceanic and Atmospheric Administration estimates an 82 percent probability that El Niño conditions will develop between May and July and continue through the end of the year, including a 67 percent chance of a Super El Niño.

Despite Tuesday’s gains, coffee prices have generally weakened over the past month as expectations for larger global supplies weighed on the market. Arabica futures fell to a one and a half year low last week following several optimistic crop forecasts for Brazil.

Supply Forecasts and Vietnam Exports

On May 7, the Coffee Trading Academy projected Brazil’s 2026/27 coffee harvest at 71.4 million bags, up 12 percent year on year.

Marex Group forecast a record crop of 75.9 million bags, while StoneX raised its estimate to 75.3 million bags. StoneX also projected the global coffee surplus could expand to 10 million bags in 2026, compared with 1.8 million bags in 2025.

Additional pressure on robusta prices has come from rising exports from Vietnam. On May 9, Vietnam’s National Statistics Office reported that coffee exports during January to April rose 15.8 percent year on year to 810,000 metric tons.

Full year exports for 2025 increased 17.5 percent to 1.58 million metric tons. Vietnam’s 2025/26 coffee production is also expected to rise 6 percent to 1.76 million metric tons, equivalent to 29.4 million bags, the highest level in four years.

Inventories and Other Factors

Indicator Value
July arabica close (Tuesday) Up 0.61% (KCN26)
July robusta close (Tuesday) Up 1.82% (RMN26)
Vietnam coffee exports (Jan-Apr 2026) 810,000 MT (+15.8% y/y)
ICE robusta inventories (May 22) 3,968 lots (6-week high)
ICE arabica inventories (Tuesday) 446,816 bags (3.25-month low)
Brazil April green coffee exports 2.76 million bags (-1.3% y/y)

ICE coffee inventories have generally declined over the past two months, offering some support to prices.

ICE robusta inventories fell to a two year low of 3,631 lots on May 15 before recovering slightly to 3,968 lots last Friday.

ICE arabica inventories dropped to a three and a quarter month low of 446,816 bags on Tuesday.

Brazilian export data also provided support. Cecafe reported on May 12 that Brazil’s April green coffee exports declined 1.3 percent year on year to 2.76 million bags.

Disruptions linked to the closure of the Strait of Hormuz have increased shipping costs, insurance premiums, fertilizer expenses, and fuel prices, tightening global coffee supply chains.

Global Production Outlook

The International Coffee Organization reported that global coffee exports for the current marketing year (October to September) fell 0.3 percent year on year to 138.658 million bags.

The USDA Foreign Agricultural Service projects global coffee production for 2025/26 will rise 2 percent to a record 178.848 million bags.

The report forecasts arabica production declining 4.7 percent to 95.515 million bags, while robusta production increases 10.9 percent to 83.333 million bags. FAS estimates Brazil’s 2025/26 coffee production at 63 million bags, down 3.1 percent, while Vietnam’s output is expected to rise 6.2 percent to a four year high of 30.8 million bags. Global ending stocks for 2025/26 are forecast to decline 5.4 percent to 20.148 million bags.

Frequently Asked Questions (FAQ)

1. Why did coffee prices rise on Tuesday?

Prices rose due to dry conditions in Vietnam threatening robusta cherry development and potential El Niño risks in Brazil that could delay flowering rains.

2. How much did robusta and arabica gain?

July robusta gained 1.82 percent, while July arabica rose 0.61 percent.

3. What is the El Niño risk for Brazil?

El Niño could delay September-October rains, the critical flowering period for coffee trees, potentially hurting the 2026/27 crop.

4. How much did Vietnam’s coffee exports increase?

Exports rose 15.8 percent in January-April 2026 to 810,000 metric tons.

5. What happened to ICE coffee inventories?

Robusta inventories recovered to 3,968 lots, while arabica inventories fell to a 3.25-month low of 446,816 bags.

6. What is the global production forecast for 2025/26?

USDA projects record production of 178.848 million bags, with arabica down 4.7% and robusta up 10.9%.

Qahwa World – Based on Barchart commodity data.
Published: May 27, 2026

Brazil Coffee Production to Hit Record 66.7 Million Bags in 2026

Posted on by Qahwa World

Author: Qahwa World – Brasília
Source: National Supply Company of Brazil (Conab), Cecafé, MDIC
Date: May 26, 2026This update covers expectations for a Brazil coffee production 2026 record, based on the latest reports and forecasts.

Brazil Coffee Output to Hit Record 66.7 Million Bags in 2026

Executive Summary

  • Brazil’s coffee production for the 2026 harvest is forecast at 66.7 million 60 kg bags, an 18% increase over 2025 and a new record, surpassing the 2020 harvest of 63.08 million bags.
  • Arabica production is expected to reach 45.8 million bags (+28%), while Robusta (Conilon) is forecast at 20.9 million bags (+0.8%).
  • Total planted area rises 3.9% to 2.34 million hectares, with national average productivity projected at 34.4 bags per hectare (+13%).
  • Minas Gerais, the largest producer, is forecast at 33.4 million bags (+29.8%). Espírito Santo follows with 18 million bags (+3%).
  • Brazil exported 11.5 million bags from January to April 2026, down 22.5% year-on-year due to low stocks, but April exports jumped 11.2% to 4.27 million bags, signaling recovery with the new harvest.
  • The USDA projects world production for 2025/26 at 178.8 million bags (+2%), with global demand rising 1.3% to 173.9 million bags, keeping prices elevated.

The National Supply Company of Brazil (Conab) released its second harvest survey on May 21, 2026, forecasting a record coffee production of 66.7 million 60 kg bags for the 2026 crop year, an 18% increase over the previous season.

If confirmed, this will be the largest harvest in Conab’s historical series, surpassing the 2020 record of 63.08 million bags.

The positive biennial cycle (higher production year for Arabica), the entry of new areas into production, and favorable weather conditions are the main drivers of this growth.

The total coffee area is expected to increase by 3.9% to 2.34 million hectares, comprising 1.94 million hectares of productive fields and 401,700 hectares of young plantations. National average productivity is projected to recover by 13% to 34.4 bags per hectare.

Arabica and Robusta Production

Arabica coffee production is forecast at 45.8 million bags, a 28% increase over 2025. This would be the third-highest Arabica harvest on record, behind only 2020 and 2018.

The expansion is driven by the positive biennial cycle, a larger area under production, and favorable weather conditions, particularly good rainfall distribution during the flowering period.

Robusta (Conilon) production is expected to reach 20.9 million bags, a modest 0.8% increase. While the harvested area is projected to grow to 388,220 hectares, average yields are estimated to drop 3.5% to 53.9 bags per hectare.

This decline reflects the high yields achieved in 2025 (a natural off-year for Robusta’s biennial cycle is less pronounced) and below-average temperatures in Espírito Santo during the production cycle, which affected plant physiology.

Production by State

Minas Gerais, the country’s largest coffee producer, is forecast to harvest 33.4 million bags (combining both species), a 29.8% increase over 2025.

This result is attributed to the positive biennial cycle combined with better rainfall distribution, especially in the months preceding flowering, as well as favorable weather through March, which provided good grain formation.

Espírito Santo, the second-largest producer, is expected to harvest 18 million bags, a 3% increase. Arabica production in the state is projected to rise 27.9% to 4.4 million bags, benefiting from the high biennial cycle.

However, Conilon production is forecast at 13.6 million bags, a 4.2% decrease due to the record-high performance in 2025 and below-average temperatures.

Bahia is expected to produce 4.7 million bags (+5.9%), supported by consistent weather, increased producer investment, and new areas entering production. São Paulo is forecast at 5.9 million bags (+24.6%), where only Arabica is grown. Rondônia is expected to produce 2.8 million bags (+19.4%), driven by the renewal of genetic material with more productive clonal plants and favorable weather.

Table 1: Brazil Coffee Production Forecast by State (2026, million 60 kg bags)

State 2026 Production (million bags) Change vs 2025 Main species
Minas Gerais 33.4 +29.8% Arabica
Espírito Santo 18.0 +3.0% Robusta (Conilon)
São Paulo 5.9 +24.6% Arabica
Bahia 4.7 +5.9% Both
Rondônia 2.8 +19.4% Robusta

Exports: April Recovery Signals New Harvest

According to the Brazilian Coffee Exporters Council (Cecafé), Brazil exported 4.27 million 60 kg bags in April 2026, an 11.2% increase compared to April 2025 (3.84 million bags). This was the first monthly increase in 2026, indicating the beginning of an export recovery as the new harvest enters the market.

“The rise in April reflects the start of the new harvest season in Brazil, which contributed to increased coffee availability for export,” said Horacio Miranda, analyst at hEDGEpoint. This upward trend supports Cecafé’s expectations of higher exports in the second half of the year.

In contrast, total exports from January to April 2026 reached 11.6 million bags, a 16.1% decrease compared to the same period in 2025. Export revenue for the first four months totaled $4.49 billion, down 14.4% year-on-year, according to MDIC data.

The decline in early 2026 reflects low domestic stocks resulting from limited production in previous years and strong export demand.

The main destinations in April were Germany, the United States, Italy, Belgium, and Japan.

Table 2: Brazil Monthly Coffee Exports (million 60 kg bags)

Month 2024 (million bags) 2025 (million bags) 2026 (million bags) Change (Apr 2026 vs Apr 2025)
January 3.2 3.1 2.9 –
February 2.8 2.9 2.4 –
March 3.0 3.2 2.6 –
April 3.4 3.84 4.27 +11.2%

Global Market Outlook

The United States Department of Agriculture (USDA) forecasts world coffee production for the 2025/26 cycle at 178.8 million 60 kg bags, a 2% increase over the previous cycle.

Despite the production increase, no significant price reductions are expected due to low carryover stocks from the previous cycle and a projected 1.3% increase in global demand to 173.9 million bags.

Brazil’s record harvest will play a major role in replenishing global stocks and meeting rising demand, particularly for high-quality Arabica beans.

Frequently Asked Questions

How much coffee will Brazil produce in 2026?

Brazil is forecast to produce 66.7 million 60 kg bags, an 18% increase over 2025, setting a new record.

What is driving the production increase?

The positive biennial cycle (high-yield year for Arabica), expansion of planted area (+3.9%), and favorable weather conditions, especially good rainfall distribution.

Which Brazilian state produces the most coffee?

Minas Gerais is the largest producer, forecast at 33.4 million bags, a 29.8% increase.

How are Brazil’s coffee exports performing?

April exports jumped 11.2% to 4.27 million bags, signaling recovery with the new harvest. However, January-April exports were down 16.1% due to low stocks.

What is the global coffee market outlook?

USDA projects world production at 178.8 million bags (+2%) and demand at 173.9 million bags (+1.3%), keeping prices elevated due to low stocks.

Author: Qahwa World – Brasília | Source: Conab, Cecafé, MDIC, USDA | Date: May 26, 2026

Guatemala Coffee Output Rises 3% to 3.13 Million Bags in 2026

Posted on by Qahwa World

Author: Qahwa World – Guatemala City
Source: USDA Foreign Agricultural Service – Report GT2026-0003
Date: April 16, 2026

Guatemala Coffee Output Rises 3% to 3.13 Million Bags in 2026

Executive Summary

  • Guatemala coffee production for 2026/2027 is forecast at 3.13 million 60 kg bags, a 3.3% increase from the previous year.
  • Harvested area expands to 345,000 hectares, up 2%, supported by maturing trees and plantation renovation.
  • Arabica accounts for 98% of output; about one‑third of plantations are planted with rust‑tolerant hybrids.
  • Exports (including soluble and roasted) are forecast at 3.2 million bags. The United States holds a 42% market share.
  • Domestic consumption reaches 900,000 bags, with soluble coffee representing 67% of that total.
  • Rust pressure reached 20% incidence in early 2025; the coffee borer (Xylosandrus compactus) has been detected in four departments.
  • ANACAFE operates input programs and a trust fund that has granted $180 million in loans since 2001.

The USDA Foreign Agricultural Service office in Guatemala City forecasts Guatemalan coffee production for marketing year 2026/2027 at 3.13 million 60 kg bags (green bean equivalent), a 3.3 percent increase from the revised 2025/2026 estimate of 3.025 million bags. The growth is primarily driven by expanded harvested area and maturing trees entering production.

Harvested area is forecast at 345,000 hectares in 2026/2027, up 2 percent from 338,000 hectares in 2025/2026. The number of bearing trees is expected to rise from 1.628 billion to 1.662 billion.

Arabica varieties account for approximately 98 percent of planted area, grown almost entirely under shade. About one‑third of Arabica plantations have been renovated with rust‑tolerant hybrids.

The remaining 2 percent consists of Robusta varieties, which are grown at lower altitudes.

The National Coffee Association (ANACAFE) continues to play a key role in ensuring the availability of certified planting material. Catimor and Caturra varieties make up nearly half of total plantings, followed by Catuai, Sarchimor, Bourbon, and others.

Producer Structure and Yield Trends

The Guatemalan coffee sector is dominated by small‑scale producers. Small growers (97 percent of producers) produce roughly 266 60 kg bags of parchment coffee annually, with average yields of 17.29 bags per hectare. Medium growers (2.9 percent) produce up to 172.9 bags annually at 18.62 bags per hectare. Large growers (0.1 percent) produce more than 173 bags annually, with yields exceeding 21.28 bags per hectare.

Yields in 2026/2027 are projected to increase slightly to 9.45 60 kg bags per hectare, above the 9.33 bags estimated for 2025/2026 but below the 9.67 bags achieved in 2024/2025.

The slight improvement reflects normal weather variations, though rising input costs remain a concern. As of March 2026, oil prices in Guatemala had increased by 20 percent, which will affect fertilizer and chemical prices for the following season.

Pest and Disease Challenges

The 2024/2025 harvest experienced higher coffee rust pressure, with incidence reaching up to 20 percent during January through March. Those months recorded higher moisture and temperature than usual. ANACAFE maintains close monitoring of rust and other pests to recommend preventive controls.

In September 2025, ANACAFE reported the identification of the coffee borer Xylosandrus compactus (Eichhoff) in the departments of Zacapa, Retalhuleu, Quetzaltenango, and San Marcos at altitudes of 600 to 900 meters. The pest was first reported in 2024 on avocado and cedar but subsequently appeared scattered on some Robusta trees. ANACAFE has provided control measures, including natural and chemical controls, but manual control appears to be the most effective method to prevent spread.

Input Programs and Farmer Support

ANACAFE’s Sustainable Profit Program provides guidance on best agronomic practices, focusing on a progressive annual pruning management system over 3‑ to 5‑year cycles. In 2024/2025, more than 27,000 hectares were harvested under the program, with 52,565 hectares registered.

ANACAFE also operates an agricultural input program that leverages collective purchasing power to secure inputs at reduced prices. The 2026 inputs program includes biostimulants, fertilizers, foliar fertilizers, fungicides, organic products, and crop protection chemicals, with discounts ranging from $0.75 per 100 pounds on standard fertilizers to specific per‑liter prices for specialty products.

A coffee trust fund, created by Legislative Decree 31‑2001 and amended over time, granted loans totaling $180 million between 2001 and 2025. Beneficiary farmers have repaid $108 million in capital and $46 million in interest. Decree 4‑2019 extended the trust fund’s duration until October 23, 2051, enhancing banking services for the sector.

Domestic Consumption

Domestic coffee consumption is projected to reach 900,000 60 kg bags in 2026/2027, a 2.9 percent increase from the 2025/2026 estimate of 875,000 bags. Soluble coffee continues to grow at a faster pace (30 percent growth rate) and accounts for 67 percent of domestic consumption (600,000 bags). Roasted and ground coffee accounts for the remaining 33 percent (300,000 bags).

Exports and Key Markets

Guatemalan coffee exports (including bean, roasted, and soluble) are forecast at 3.2 million 60 kg bags in 2026/2027, a 7.4 percent increase from the revised 2025/2026 estimate of 2.98 million bags. Green coffee exports represent approximately 90 percent of total exports, while demand for soluble exports continues to increase.

The United States remains the main destination, with a 42 percent market share. Other significant markets include Japan, Canada, Belgium, Italy, and South Korea. By region, North America absorbs 52 percent of exports, followed by Europe (26 percent), Asia (20 percent), and the rest of the world (2 percent).

In 2024/2025, total export value reached $1.284 billion, with prices averaging above $300 per 60 kg bag. To improve the buying experience, customers can explore the website “Explore – Guatemalan Coffees,” which displays farm‑level information on the best coffees of the year, including location, regional classification, varieties, processing methods, and showcasing schedules.

Table 1: Guatemala Coffee Exports (1,000 60 kg bags)

Destination MY 2023/24 MY 2024/25 Share (2024/25)
United States 1,294 1,198 41.9%
Japan 308 330 11.5%
Canada 360 273 9.5%
Belgium 263 266 9.3%
Italy 165 155 5.4%
South Korea 147 111 3.9%
Germany 131 96 3.4%
Others 483 430 15.0%
Total 3,151 2,859 100%

Policy, Sustainability, and Trade Agreements

In calendar year 2025, coffee represented 3.3 percent of Guatemala’s GDP and was the main agro‑industrial export product, accounting for 8 percent of total agricultural exports. Coffee is grown in 261 of the country’s 340 municipalities and covers 3.5 percent of total cropland. ANACAFE, established under Decree 19‑69, is responsible for issuing export licenses and promoting the sector.

ANACAFE promotes compliance with international and national policies related to greenhouse gas reduction. Initiatives include promoting renewable energy, water resource management with treatment and re‑utilization of processing water, and active geospatial monitoring to prevent deforestation. Close to 99 percent of Guatemalan coffee plantations comply with the EU zero‑deforestation policy, supported by specific platforms developed by ANACAFE.

On November 18, 2025, Guatemala’s Congress ratified the free trade agreement with South Korea through Decree 18‑2025. South Korea has also completed its ratification. Under the agreement, green coffee was granted immediate market access, representing a significant opportunity for the coffee sector.

Domestic reference prices for washed Arabica coffee as of April 7, 2026, are: hard green bean $247.53 per 60 kg bag, strictly hard green bean $253.53, and specialty strictly hard $256.53. Cherry prices range from $32.72 to $38.93 per bag depending on grade.

Frequently Asked Questions

How much coffee will Guatemala produce in 2026/2027?

Production is forecast at 3.13 million 60 kg bags, a 3.3% increase from the previous year.

What is the main export market for Guatemalan coffee?

The United States is the largest market, accounting for 42% of total exports.

What pests and diseases affect Guatemalan coffee?

Coffee rust (reaching 20% incidence in early 2025) and the coffee borer (Xylosandrus compactus) detected in four departments.

What percentage of Guatemalan coffee is grown under shade?

Almost 98% of Arabica coffee is grown entirely under shade.

How much of Guatemala’s domestic consumption is soluble coffee?

Soluble coffee accounts for 67% of domestic consumption (600,000 out of 900,000 bags).

What is ANACAFE’s role?

ANACAFE is the National Coffee Association, established under public law to enhance coffee production, marketing, and exportation, and it issues export licenses.

Author: Qahwa World – Guatemala City | Source: USDA Foreign Agricultural Service – Report GT2026-0003 | Date: April 16, 2026