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Dark roasted coffee beans with scoop by Rattanapol via Shutterstock <\/p>\n
May arabica coffee (KCK26<\/a>) today is up +1.45 (+0.48%), and May ICE robusta coffee (RMK26<\/a>) is up +97 (+2.89%).<\/p>\n Coffee prices are moving higher today, with robusta up sharply at a 1-week high. \u00a0Reduced coffee supplies from Brazil are supporting prices after Cecafe reported today that Brazil Mar green coffee exports fell -10% y\/y to 2.65 million bags. \u00a0Last Wednesday, Brazil’s Trade Ministry reported that Brazil’s Mar coffee exports fell -31% y\/y to 151,000 MT.<\/p>\n Below-average rainfall in Brazil may curb coffee yields and is bullish for prices after Somar Meteorologia reported on Monday that Brazil’s largest arabica coffee-growing area, Minas Gerais, received 4.2 mm of rain last week, or only 20% of the historical average.<\/p>\n Strength in the Brazilian real is also bullish for coffee prices as the real (^USDBRL<\/a>) rallied to a 2-year high against the dollar today. \u00a0The stronger real discourages export sales from Brazil’s coffee producers.<\/p>\n Tightness in robusta coffee supplies is supportive for robusta prices. \u00a0ICE robusta inventories fell to a 1.25-year low of 3,911 lots today. \u00a0However, rising ICE inventories are also pressuring arabica coffee prices as ICE-monitored arabica inventories rose to a 6.25-month high of 585,621 bags on March 18.<\/p>\n The closure of the Strait of Hormuz has disrupted global shipping and tightened global coffee supplies. \u00a0The closure of the waterway has increased global shipping rates, insurance, and fuel costs, and raises costs for coffee importers and roasters.<\/p>\n Last Wednesday, arabica fell to a 4-week low amid expectations of a record Brazilian coffee crop. \u00a0On March 19, Marex Group Plc projected a record 2026\/27 Brazil coffee crop of 75.9 million bags, even higher than Sucafina’s forecast of 75.4 million bags, up +15.5% y\/y. \u00a0On March 12, StoneX raised its Brazil 2026\/27 coffee production estimate to a record 75.3 million bags, up from a November estimate of 70.7 million bags. \u00a0Meanwhile, StoneX projected the 2026 global coffee surplus will expand to 10 million bags from 1.8 million bags in 2025, the biggest surplus in 6 years.<\/p>\n Soaring coffee exports from Vietnam, the world’s largest robusta producer, are weighing on robusta prices. \u00a0On April 3, Vietnam’s National Statistics Office reported that Vietnam’s 2026 coffee exports (Jan-Mar) rose by 14% y\/y to 585,000 MT. \u00a0Vietnam’s 2025 coffee exports jumped by +17.5% y\/y to 1.58 MMT. \u00a0Also, Vietnam’s 2025\/26 coffee production is projected to climb +6% y\/y to a 4-year high of 1.76 MMT (29.4 million bags).<\/p>\n Coffee prices in February sold off sharply, with arabica falling to a 17-month low on February 24 as signs of a bumper Brazilian coffee crop supported the global supply outlook. \u00a0On February 5, Conab, Brazil’s crop forecasting agency, said that Brazil’s 2026 coffee production will climb by +17.2% y\/y to a record 66.2 million bags, with arabica production up +23.2% y\/y to 44.1 million bags and robusta production up +6.3% y\/y to 22.1 million bags. \u00a0Meanwhile, Rabobank said on March 4 that global coffee production is projected to reach a record 180 million bags in the 2026\/27 season, up by about 8 million bags from a year earlier. \u00a0<\/p>\n As a bearish factor, the International Coffee Organization (ICO) reported on November 7 that global coffee exports for the current marketing year (Oct-Sep) fell -0.3% y\/y to 138.658 million bags.<\/p>\n The USDA’s Foreign Agriculture Service (FAS) bi-annual report on December 18 projected that world coffee production in 2025\/26 will increase by +2.0% y\/y to a record 178.848 million bags, with a -4.7% decrease in arabica production to 95.515 million bags and a +10.9% increase in robusta production to 83.333 million bags. \u00a0FAS forecasted that Brazil’s 2025\/26 coffee production will decline by -3.1% y\/y to 63 million bags and that Vietnam’s 2025\/26 coffee output will rise by 6.2% y\/y to a 4-year high of 30.8 million bags. \u00a0FAS forecasts that 2025\/26 ending stocks will fall by -5.4% to 20.148 million bags from 21.307 million bags in 2024\/25. On the date of publication, Rich Asplund<\/a> did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here<\/a>. <\/p>\n","protected":false},"excerpt":{"rendered":"Dark roasted coffee beans with scoop by Rattanapol via Shutterstock May arabica coffee (KCK26) today is up +1.45…\n","protected":false},"author":2,"featured_media":606854,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[64,63,75,40949,128],"class_list":{"0":"post-606853","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-environment","8":"tag-au","9":"tag-australia","10":"tag-environment","11":"tag-n-a","12":"tag-science"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/606853","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=606853"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/606853\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/606854"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=606853"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=606853"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=606853"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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