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.

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:

Chris Bliley with Growth Energy discusses ongoing concerns about U.S. ethanol exports and the expansion of market access promised under the Phase One deal between the U.S. and China.
With core input inflation still hovering high, growers and retailers should plan pricing and promotions with tighter margins in mind — target early sales, leverage bundle deals, and secure logistics ahead of peak Halloween demand.
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.
Global agriculture is stabilizing after years of price swings, with flat to modestly rising returns expected as productivity offsets slower demand growth.
Prepare for softer milk checks into winter, watch cull-cow values and timing, and stress-test cash flow as product prices recalibrate.
Expect incremental near-term lift for feed grains, proteins, and ethanol as tariff cuts and smoother approvals translate into real orders.