Coffee took a hit on Tuesday with arabica down 1.88% and robusta falling 2.37%. The main culprit? Brazil coffee production is looking way better than expected. Minas Gerais, Brazil's biggest arabica region, just got solid rainfall last week - about 113% of normal - which eased a lot of the drought concerns we've been watching. Conab's now forecasting Brazil's 2026 coffee output will jump 17.2% year-over-year to 66.2 million bags, with arabica climbing 23.2%. That's huge supply coming. On the robusta side, Vietnam keeps flooding the market with exports - January shipments surged 38% compared to last year, hitting 198,000 MT. Vietnam's 2025/26 production is projected around 1.76 million MT, a 4-year high. Meanwhile, ICE coffee inventories have been recovering too, which is adding more pressure on prices. The one bright spot? Colombia's coffee production dropped 34% year-over-year in January, but that's not enough to offset what's happening in Brazil and Vietnam. Looks like we're heading into a period of ample global coffee supplies.

COFFEE-0.33%
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned