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
Rich Nelson, a commodity broker for Allendale Inc., joins us to break down what the U.S.-China trade agreement means for the ag economy.
The U.S.-China summit raises hopes for stronger exports and reduced barriers, but U.S. ag players should remain strategically cautious until concrete volumes and certifications materialize.
Expect incremental near-term lift for feed grains, proteins, and ethanol as tariff cuts and smoother approvals translate into real orders.
Cattle markets are collapsing this week, and analysts say that several factors are at play. Consumer beef prices also remain near all-time highs, threatening long-term demand.
If confirmed, early Chinese buys tighten nearby Gulf/PNW capacity and could bump basis in export-oriented regions.
Trade pacts with Malaysia and Cambodia unlock tariff-free and preferential lanes for key U.S. farm goods, expanding long-term demand in Southeast Asia.

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:

Record milk output looks strong today, but shrinking replacement numbers mean future supply adjustments could be faster and more volatile.
Often overlooked, cotton wholesalers act as stabilizers during market stress, translating fragmented retail demand into workable production programs for mills and manufacturers.
Strong blending demand continues to support ethanol use even as production and exports fluctuate.
Farm CPA Paul Neiffer helps producers navigate farm program payments and understand the key details farmers need to know.
Early indications suggest the U.S. cattle industry may be nearing the end of its liquidation phase. Oklahoma State University livestock economist Dr. Derrell Peel says the industry could be at or near the cyclical low.
Beef x Dairy cattle with strong genetics and documentation are earning prices comparable to native feeders.