Coffee prices are experiencing a significant drop, with arabica reaching a 15-month low and robusta hitting a 6.25-month low. This decline is largely due to an anticipated record coffee crop in Brazil, which is set to boost global supply. Recent reports indicate that Brazil's coffee production for 2026 is expected to rise by 17.2% year-on-year, driven by a substantial increase in both arabica and robusta production. Additionally, favorable weather conditions in Brazil have further enhanced crop prospects.
• Arabica coffee prices fell by 2.05%, while robusta dropped by 1.93%.
• Brazil's coffee exports saw a sharp decline of 42.4% year-on-year in January.
• Vietnam's coffee exports surged by 38.3% year-on-year, adding pressure on robusta prices.
• Colombian coffee production decreased by 34% year-on-year, providing some support for prices.
Understanding these trends is crucial for market participants. The anticipated increase in coffee supply from Brazil and Vietnam could lead to lower prices, impacting farmers and consumers alike. As coffee remains a staple beverage globally, these fluctuations can affect economies and livelihoods across producing countries.
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