Coffee, Cocoa Prices Slide As Global Supplies Expand

Expanding supplies are weighing on global coffee and cocoa prices.

PR Coffee 1280.jpg

Market Day Report

LUBBOCK, TEXAS (RFD NEWS) — Global coffee and cocoa markets are under pressure as improving weather and expanding production outlooks increase expectations for stronger supplies. Commodity traders are watching both crops closely as new forecasts and inventory levels point to shifting supply conditions across major producing regions.

Cocoa prices softened amid expectations for better crop conditions in West Africa. Weather forecasters say rainfall is expected to continue across much of the region, supporting flowering and potential yield improvements. Additional pressure came from rising exchange inventories, which climbed to a seven-month high of more than 2.26 million bags. Earlier rallies were tied to stronger buying interest from Ivory Coast grinders after recent farm-gate price cuts in both Ivory Coast and Ghana, which together produce more than half of the world’s cocoa.

Farm-Level Takeaway: Expanding supplies are weighing on global coffee and cocoa prices.
Tony St. James, RFD NEWS Markets Specialist

Operationally, coffee markets are facing significant supply pressure from expectations of a large Brazilian crop. Analysts raised Brazil’s 2026–27 coffee production outlook to roughly 75 million bags, while Brazil’s government previously projected output climbing more than 17 percent year over year. Global coffee production could approach record levels near 180 million bags as expanding robusta output offsets weaker arabica production in some regions.

Regionally, rising exports from Vietnam — the world’s largest robusta producer — are adding to supply pressure after shipments climbed 14 percent during the first two months of the year. Exchange inventories have also increased, with arabica stocks reaching a multi-month high. Meanwhile, disruptions to shipping routes tied to tensions in the Strait of Hormuz are raising freight and insurance costs for importers and roasters.

Looking ahead, weather conditions in West Africa and crop prospects in Brazil will remain key drivers for cocoa and coffee markets as traders weigh expanding global supplies against ongoing shipping disruptions.

Related Stories
An import lag for ground beef will likely look different than last year’s egg shortage. The difference comes down to biosecurity and market flexibility.
China’s crusher losses and Brazil tensions, Gale warns, could reopen critical soybean trade channels for U.S. producers.
Persistently low Mississippi River levels are turning logistics challenges into pricing risks — tightening margins for grain producers and exporters across the heartland.
China’s grain expansion model may be hitting its limit. Lower prices, high rents, and policy fatigue threaten future output — with ripple effects across global feed and oilseed markets.
U.S. Rep. Dusty Johnson (R-SD) shares his outlook on the developing U.S.-China Trade agreement, and the ongoing impact of the federal government shutdown—now stretching past four weeks—on rural communities and producers.
RealAg Radio host Shaun Haney joined us on Friday’s Market Day Report to discuss what the Carney-Xi meeting could mean for Canadian producers.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Stronger U.S.-Guatemala trade rules favor dependable, regionally integrated supply chains — rewarding execution and commitment over cost-only sourcing.
China-led demand continues to anchor soybean and sorghum exports despite weekly swings.
Shrinking slaughter capacity may delay heifer retention, complicating herd rebuilding plans.
Strong seasonal demand and manageable production growth continue to support poultry markets.
Clearer 45Z rules favor U.S. oilseeds, but final RFS volumes remain critical to locking in demand.
Even small declines in the calf crop translate into sustained supply pressure, supporting cattle prices over multiple years.