Tag: Coffee Prices

Coffee Prices Surge 16% on Brazil Harvest Delays and Weather Risks

Posted on by Qahwa World

Source: Barchart – Adapted by Qahwa World |
Author: Qahwa World |
Date: July 6, 2026

Coffee Prices Surge 16% on Brazil Harvest Delays and Weather Risks

Key Takeaways:

  • Arabica prices jumped 16.19% to a 5.5-month high; robusta rose 8.83% to a 5-month high.
  • Brazil’s 2026/27 coffee harvest was only 52% complete as of July 1, behind last year’s 60% and the 55% five-year average.
  • Rain is forecast for mid-July in Brazil, which could be detrimental to coffee crops.
  • ICE arabica inventories fell to a 27-month low of 366,756 bags.
  • El Niño concerns are supporting prices, with a 67% chance of a “Super El Niño.”
  • USDA forecasts a record Brazil 2026/27 crop of 71.9 million bags (+14% y/y), which remains a bearish factor.
  • Vietnam’s coffee exports rose 7.3% in the first half of 2026, pressuring robusta prices.

Coffee prices catapulted higher on Monday, with arabica posting a 5.5-month high and robusta reaching a 5-month high amid a delayed coffee harvest in Brazil. September arabica futures closed up 16.19%, while September robusta futures gained 8.83%.

According to Safras & Mercado, Brazil’s 2026/27 coffee harvest was 52% complete as of July 1, behind last year’s comparable level of 60% and the five-year average of 55%.

Harvest Delay and Rain Forecast Drive Prices Higher

Gains in coffee accelerated on Monday after meteorologist Rural Clima said rain is forecast for a large part of Brazil in the middle of July, which could be “detrimental” to crops, including coffee. Also, Monday’s rally in the Brazilian real to a two-week high against the dollar discourages coffee sales from Brazil’s producers and is supportive for prices.

Coffee prices have moved sharply higher over the past month as heavy rains in Brazil disrupted fieldwork and may have lowered coffee crop quality. Brazilian coffee farmers are also holding back on sales, hoping prices will rise and bracing for the potential impact of this year’s El Niño weather event.

Exchange Inventories at 27-Month Lows

ICE coffee inventories have trended lower over the past three months, supporting coffee prices. ICE arabica coffee inventories fell to a 27-month low of 366,756 bags on Monday. Meanwhile, ICE robusta inventories fell to a two-year low of 3,631 lots on May 15 but have since risen to a three-month high of 4,109 lots last Friday.

Indicator Value Significance
September Arabica Futures +16.19% 5.5-month high
September Robusta Futures +8.83% 5-month high
ICE Arabica Stocks 366,756 bags 27-month low
Brazil Harvest Completion 52% Below last year’s 60%
ICE Robusta Stocks 4,109 lots 3-month high

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

Concerns that an El Niño weather pattern could hurt Brazil’s coffee crop next year are bullish for prices. Coffee trader Commercial said the El Niño pattern may delay rains in Brazil this September and October, when tree flowering normally occurs, 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 that could be the strongest on record. On June 10, the Japan Meteorological Agency confirmed an El Niño pattern had formed across the equatorial Pacific, setting the stage for months of possible floods, droughts, and temperature fluctuations that could hinder coffee production in Asia and South America.

Bearish Factors: Record Crop Forecasts and Vietnam Exports

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) forecast a record 2026/27 Brazil coffee crop of 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 Vietnam, the world’s largest robusta producer, coffee exports in the first half of 2026 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. 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.

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 the Coffee Price Surge

Q: Why did coffee prices surge 16%?

A: Due to Brazil’s delayed harvest (52% complete vs. 60% last year), rain forecasts for mid-July that could damage crops, and inventories falling to 27-month lows.

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 366,756 bags (a 27-month low), while robusta stocks rose to 4,109 lots (a 3-month high).

Q: Will prices continue to rise?

A: It depends on weather developments in Brazil, the severity of any crop damage, El Niño developments, and inventory trends.

The coffee market faces heightened uncertainty. While large surplus expectations remain in the background, delayed harvests, weather risks, falling inventories, and El Niño concerns are reshaping the balance. Investors are closely watching weather developments in Brazil and inventory trends 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: July 6, 2026

Drier Weather in Brazil Aids Coffee Harvest and Weighs on Prices

Posted on by Qahwa World

Source: Barchart – Adapted by Qahwa World |
Author: Qahwa World |
Date: June 22, 2026

Drier Weather in Brazil Aids Coffee Harvest and Weighs on Prices

Key Takeaways:

  • Arabica prices fell 0.73% and robusta fell 1.76% to a one-week low, as drier weather in Brazil is expected to allow the harvest to resume.
  • The reopening of the Strait of Hormuz eases supply disruptions, lowering shipping, insurance, and fuel costs.
  • ICE arabica inventories fell to a 27-month low of 394,267 bags.
  • 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%).
  • Global production in 2025/26 is projected at 178.85 million bags (+2.0%), with ending stocks falling 5.4%.

Coffee prices came under pressure today, with robusta falling sharply to a one-week low. The decline came as expectations of drier weather in Brazil raised hopes that the country’s coffee harvest can resume. September arabica futures fell 0.73%, while July robusta futures dropped 1.76%.

Prices had rallied to five-week highs last Thursday amid persistent rain in Brazil, which delayed the harvest. However, improving weather conditions are now reversing that trend, as harvesting activities are expected to accelerate in key coffee regions.

Drier Weather Resumes Harvest and Pressures Prices

Meteorological agencies forecast drier weather across Brazil’s key coffee-growing regions in the coming days, allowing farmers to resume harvesting activities that had been halted by heavy rains. This development is expected to increase supply in global markets, especially with expectations of a bumper harvest this year. The improved weather conditions have led to a decline in prices, as traders took advantage of the favorable weather to accelerate profit-taking.

Strait of Hormuz Reopening Eases Supply Disruptions

Authorities announced the reopening of the Strait of Hormuz to maritime traffic, easing supply disruptions that have affected the market in recent months. The reopening is expected to lower shipping rates, insurance premiums, fuel costs, and fertilizer prices, thereby reducing overall costs for importers and roasters. This development represents an additional bearish factor, as lower logistics costs remove some of the support that had been underpinning prices during the closure.

Indicator Value Significance
September Arabica Futures -0.73% Decline on improving weather
July Robusta Futures -1.76% One-week low
ICE Arabica Stocks 394,267 bags 27-month low
ICE Robusta Stocks 4,032 lots 2.25-month high
Strait of Hormuz Reopened Easing supply disruptions

Exchange Inventories at Multi-Year Lows

ICE arabica coffee inventories fell to 394,267 bags last 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.

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 on June 10 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 on June 11 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 on June 2, 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.

Global Production Outlook and Inventories Point to a Delicate Balance

The International Coffee Organization (ICO) reported on November 7 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 coffee prices decline today?

A: Due to expectations of drier weather in Brazil allowing the harvest to resume, and the reopening of the Strait of Hormuz easing supply disruptions.

Q: How does the reopening of the Strait of Hormuz affect coffee prices?

A: It is expected to lower shipping, insurance, and fuel costs, reducing costs for importers and roasters and putting 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 rose to 4,032 lots (a 2.25-month high).

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 impact of El Niño on coffee prices?

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

The coffee market remains caught between supportive factors (El Niño concerns, falling inventories) and bearish factors (improving weather in Brazil, Strait of Hormuz reopening, record crop expectations, rising Vietnamese production). Improving weather conditions and the reopening of the strait add additional downward pressure, though El Niño concerns and declining inventories still provide some support. All eyes remain on weather developments in Brazil and inventory trends 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 22, 2026

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

Arabica Coffee Rebounds Amid Tight Spot Market Supplies

Posted on by Qahwa World
Source: Barchart (adapted) |
Author: Qahwa World |
Date: June 5, 2026

Recent trends show that arabica coffee has experienced a rebound in the spot market, drawing attention from both traders and coffee enthusiasts. In this article, we will examine the key developments and analysis surrounding the arabica coffee rebound spot market and what it means for industry stakeholders. If you are following arabica coffee rebound spot market news, understanding arabica coffee rebound spot market conditions is important for those looking to make sense of price fluctuations and opportunities in the industry.

Arabica Coffee Rebounds Amid Tight Spot Market Supplies

Key Highlights:

  • July arabica coffee futures rose 0.34% after hitting a 19-month low.
  • ICE arabica coffee inventories fell to a 3.75-month low on Thursday.
  • A record Brazil 2026/27 crop forecast is weighing on prices.
  • Rabobank raised its global arabica surplus estimate to 9.5 million bags.
  • Vietnam’s coffee exports rose 7.9% in the first five months of 2026.
  • El Niño could delay rains in Brazil and hurt next year’s crop.
  • The ongoing closure of the Strait of Hormuz disrupts global coffee supplies.

Arabica coffee futures rebounded from a 19-month low today. July arabica rose 0.34%, while July robusta fell 1.34%. The rebound was driven by short covering amid persistent tightness in the spot market. ICE monitored arabica coffee inventories dropped to a 3.75-month low on Thursday.

Therefore, the market remains mixed. Improved global supply expectations have pushed prices lower over the past six weeks. However, near-term supply tightness and geopolitical risks provide support.

Record Brazil Crop Forecast Weighs on Prices

On Wednesday, the USDA Foreign Agricultural Service (FAS) forecast a record 2026/27 Brazil coffee crop of 71.9 million bags. This represents a 14% increase year on year. In addition, Rabobank raised its 2026/27 global arabica surplus estimate to 9.5 million bags, up 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 Plc projected a record 75.9 million bags, surpassing Sucafina‘s forecast of 75.4 million bags. StoneX raised its estimate to 75.3 million bags on March 12.

As a result, coffee prices have trended lower over the past six weeks. StoneX projects the 2026 global coffee surplus will expand to 10 million bags, up from 1.8 million bags in 2025. This would be 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

On 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. Moreover, 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 3.75-month low of 426,063 bags on Thursday. Meanwhile, ICE robusta inventories dropped to a two-year low of 3,631 lots on May 15. They are now slightly higher at 3,732 lots.

El Niño and Strait of Hormuz Threaten Supplies

Concerns are growing that an El Niño weather pattern could hurt Brazil’s coffee crop next year. Coffee trader Commercial stated that El Niño may delay rains in Brazil during September and October, when tree flowering normally occurs. This would damage the 2026/27 crop.

The US National Oceanic and Atmospheric Administration (NOAA) estimates an 82% probability that El Niño conditions will emerge between May and July and persist through the end of the year. There is a 67% chance of a “Super El Niño.”

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

On the bearish side, 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.

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

Ending Stocks Continue to Decline

The USDA FAS 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 comes despite higher production expectations. It reflects strong global demand and continued supply chain pressures.

However, prices may face additional pressure if large surplus forecasts materialize, especially with recovering production in Brazil and Vietnam. Investors remain watchful of weather developments in South America and geopolitical tensions in the Arabian Gulf region.

Frequently Asked Questions About Coffee Price Movements

Q: Why did arabica coffee prices rebound despite record Brazil crop forecasts?

A: Due to short covering and tight spot market supplies. ICE monitored inventories fell to a 3.75-month low.

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

A: Rising Vietnamese exports increase global robusta supply, putting downward pressure on prices. July robusta futures fell 1.34% today.

Q: What is the impact of El Niño on coffee prices?

A: El Niño could delay rains in Brazil, harming tree flowering and reducing next year’s crop. This would support higher prices.

Q: How does the Strait of Hormuz closure affect the coffee market?

A: The closure disrupts shipping routes and raises transport, insurance, and fuel costs. This increases costs for importers and roasters.

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

A: StoneX expects the surplus to reach 10 million bags, the largest in six years, driven by higher production in Brazil and Vietnam.

The coffee market remains torn between large surplus expectations on one hand and tight spot supplies, weather risks, and geopolitical tensions on the other. Investors continue to monitor exchange inventories and weather developments in Brazil closely.

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 5, 2026

Russia Mandates Digital Labeling for Coffee and Chicory From June 2026

Posted on by Qahwa World

Source: TASS + Qahwa World |
Date: June 2, 2026

Russia Mandates Digital Labeling for Coffee and Chicory From June 2026

Key Takeaways:

  • Russia launches mandatory “Honest Sign” digital labeling for coffee and chicory from June 1, 2026.
  • Data Matrix codes on every package ensure full traceability from production to shelf.
  • Consumers can verify products instantly using the official mobile app.
  • Retail prices expected to rise 5 to 15 percent during the initial adaptation phase.
  • The Russian system surpasses European standards in consumer accessible real time data.
  • Labeling now covers more than 20 product categories as part of a national anti counterfeiting strategy.

Russia has officially launched mandatory digital labeling for coffee and chicory as of June 1, 2026. The measure is part of the national “Honest Sign” (Честный Знак) system. The initiative aims to enhance supply chain transparency and combat counterfeit products.

At the same time, Russia introduced piece by piece traceability for salmon and sturgeon caviar. This move is part of a broader government strategy that already covers more than 20 product categories. The coffee sector, especially instant coffee, is expected to see significant changes in prices and market structures in the coming period.

How It Works: 2D Codes and a Verification App

According to the government decree published on the official legal information portal, all producers and importers must now apply Data Matrix codes to coffee and chicory products. This applies when introducing products into commercial circulation. Goods manufactured before the deadline can be sold without codes until their expiration date.

The Center for the Development of Advanced Technologies (CRPT), operator of the “Honest Sign” system, stated that consumers can now verify product authenticity and safety with a single scan. This is done using the official mobile app. The app displays manufacturer or importer details, production date, shelf life, and official permits. If any issue is found, the app triggers immediate warnings to the buyer.

Expected Impact on Coffee Prices

Industry experts anticipate moderate price increases in the short term. The cost of applying each Data Matrix code, combined with expenses for labeling equipment, software integration, and staff training, will put pressure on producers. The instant coffee segment, which operates on low profit margins, will be particularly affected.

As a result, analysts estimate potential retail price rises of 5 to 15 percent for certain categories during the initial adaptation phase. However, the Ministry of Industry and Trade has downplayed concerns. It argues that reducing the gray market, estimated at up to 13 percent in the coffee sector, will eventually offset costs. Legitimate producers will then be able to gain market share.

In the medium to long term, greater market transparency could stabilize or even slightly lower prices. Squeezing out counterfeit and smuggled products will foster fairer competition.

Comparison: Russian System vs. European Standards

Criteria Russian “Honest Sign” System EU System (Regulation 178/2002)
Traceability level Centralized, unit by unit One step forward, one step back (direct suppliers and customers)
Consumer access to data Public via mobile app, instant scan of each package Not generally available to the public
Primary focus Anti counterfeiting, tax evasion reduction Food safety, health, environmental sustainability
National database Yes, unified and centralized No centralized public database
Additional initiatives Mandatory for over 20 product categories Digital Product Passport, EU Deforestation Regulation (EUDR)

Why This Matters

This development is part of a broader Russian strategy. Moscow has already applied mandatory labeling to more than 20 product categories, including pharmaceuticals, dairy, and bottled water. For consumers, this represents a significant empowerment. Instead of relying solely on brand reputation, they can now verify government backed information.

In addition, the reform is expected to reduce health risks from counterfeit products. It will also protect legitimate businesses, cut tax evasion, and support environmental goals. This is especially important for high value items like caviar, where illegal fishing has long been a concern.

The CRPT noted that a successful voluntary pilot phase allowed businesses to test and optimize the system beforehand. This minimized operational disruption.

As Russia strengthens its digital traceability infrastructure, its standards move closer to, and in some aspects ahead of, evolving international best practices. Consumers in Russia are advised to download the “Honest Sign” app and make scanning a regular habit when purchasing coffee, chicory, or premium caviar.

Frequently Asked Questions About Russia’s Digital Labeling System

Q: When did mandatory coffee labeling take effect in Russia?

A: The system came into force on June 1, 2026. It covers coffee and chicory.

Q: How can consumers verify product authenticity?

A: By downloading the official “Honest Sign” (Честный Знак) mobile app and scanning the Data Matrix code on the package.

Q: Will coffee prices increase because of this system?

A: A temporary increase of 5 to 15 percent is expected during the initial adaptation phase. In the long term, eliminating the gray market could stabilize or lower prices.

Q: What is the difference between the Russian and European traceability systems?

A: The Russian system is centralized and allows consumers to scan each product instantly. The EU system relies on one step forward, one step back traceability between businesses without a public consumer database.

Q: Does the system apply to imported products?

A: Yes, importers must also apply Data Matrix codes to imported products when they enter the Russian market.

Q: What other product categories already have mandatory labeling?

A: The system covers more than 20 categories, including pharmaceuticals, dairy, bottled water, fur, perfumes, tires, cameras, and others.

Prepared by: Qahwa World Specialized News Unit – based on statements from TASS and the Center for the Development of Advanced Technologies (CRPT).

Publication date: June 2, 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

Robusta Coffee Rallies on Vietnam Dry Weather

Posted on by Qahwa World
Author: Qahwa World
Source: Barchart (Rich Asplund)
Date: May 23, 2026

Robusta Coffee Rallies on Vietnam Dry Weather

Executive Summary:

  • July robusta coffee closed up 1.68 percent on Friday, while July arabica fell 0.38 percent.
  • Dry weather in Vietnam’s Central Highlands raised concerns about the robusta crop, with forecasters calling for more rain to aid cherry growth.
  • El Niño weather patterns may delay rains in Brazil during flowering season (September-October), potentially hurting the 2026/27 crop.
  • NOAA estimates an 82 percent chance of El Niño conditions between May and July, with a 67 percent chance of a Super El Niño.
  • ICE robusta inventories recovered to a 6 week high of 3,968 lots on Friday, while arabica inventories fell to a 3 month low.
  • Brazil’s April green coffee exports fell 1.3 percent year on year to 2.76 million bags, supporting prices.
  • The closure of the Strait of Hormuz continues to disrupt global coffee supplies, adding bullish pressure.

Coffee prices settled mixed on Friday, May 22, 2026. July robusta coffee futures closed up 1.68 percent, rising sharply amid dry weather in Vietnam that is raising concerns about the country’s robusta coffee crop. July arabica coffee futures closed down 0.38 percent.

Weather forecaster Vaisala reported that recent showers in Vietnam’s Central Highlands, the country’s main growing region, have been spotty. More rain is needed to aid cherry growth. This supply concern helped drive robusta prices higher.

El Niño Risks and Brazil Crop Outlook

Concerns that an El Niño weather pattern could hurt Brazil’s coffee crop next year are also supporting prices. Coffee trader Commercial said El Niño may delay rains in Brazil during September and October, when tree flowering normally occurs, potentially damaging the 2026/27 coffee crop.

The US National Oceanic and Atmospheric Administration (NOAA) estimates an 82 percent probability that El Niño conditions will emerge between May and July and persist through the end of the year, with a 67 percent chance of a Super El Niño.

Despite these risks, larger Brazilian crop forecasts have weighed on arabica prices. On May 7, the Coffee Trading Academy projected Brazil’s 2026/27 coffee harvest will increase 12 percent year on year to 71.4 million bags. On March 19, Marex Group projected a record Brazilian crop of 75.9 million bags.

On March 12, StoneX raised its estimate to a record 75.3 million bags. StoneX also projected the 2026 global coffee surplus will 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 Vietnam’s coffee exports in the first four months of 2026 rose 15.8 percent year on year to 810,000 metric tons.

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

ICE coffee inventories have trended lower over the past two months, which is supportive of coffee prices. ICE robusta inventories fell to a two year low of 3,631 lots last Friday but recovered to a six week high of 3,968 lots on Friday. ICE arabica coffee inventories fell to a three month low of 449,567 bags on Friday.

Key Market Data

Indicator Value
July robusta coffee close (May 22) Up 1.68%
July arabica coffee close (May 22) Down 0.38%
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 (May 22) 449,567 bags (3 month low)
Brazil April green coffee exports 2.76 million bags (-1.3% y/y)
El Niño probability (NOAA) 82% between May-July, 67% Super El Niño

Other Market Factors

Smaller exports from Brazil are supportive of coffee prices. Last Tuesday, Cecafe reported that Brazil’s April green coffee exports fell 1.3 percent year on year to 2.76 million bags. The ongoing closure of the Strait of Hormuz has disrupted global coffee supplies and is bullish for prices. The closure has increased shipping rates, insurance, fertilizer, and fuel costs, raising costs for importers and roasters.

As a bearish factor, the International Coffee Organization reported on November 7 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 Agriculture Service bi-annual report of December 18 projected world coffee production in 2025/26 will increase 2.0 percent year on year to a record 178.848 million bags, with a 4.7 percent decrease in arabica production to 95.515 million bags and a 10.9 percent increase in robusta production to 83.333 million bags.

The USDA forecast Brazil’s 2025/26 coffee production will decline 3.1 percent to 63 million bags and Vietnam’s output will rise 6.2 percent to a four year high of 30.8 million bags. Ending stocks for 2025/26 are projected to fall 5.4 percent to 20.148 million bags.

Frequently Asked Questions (FAQ)

1. Why did robusta coffee prices rally on Friday?

Robusta rallied on dry weather concerns in Vietnam’s Central Highlands, where spotty rains raised worries about cherry development.

2. What is the El Niño risk for Brazil coffee?

El Niño may delay rains in Brazil during September and October, the typical flowering period, potentially hurting the 2026/27 coffee crop.

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

Vietnam’s coffee exports rose 15.8 percent in the first four months of 2026 to 810,000 metric tons.

4. What happened to ICE coffee inventories?

Robusta inventories recovered to a six week high of 3,968 lots, while arabica inventories fell to a three month low of 449,567 bags.

5. How did Brazil’s April coffee exports perform?

Brazil’s April green coffee exports fell 1.3 percent year on year to 2.76 million bags.

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

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

Qahwa World – Based on Barchart commodity bulletin by Rich Asplund.
Published: May 23, 2026