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
Productivity gains are supporting supply despite limited herd expansion.
Brooks York with AgriSompo addresses how current market conditions and risk management are impacted by volatility in the Middle East, and considerations for farmers in the spring planting season.
For agriculture, the meeting is seen as a potential turning point, with markets watching closely for any signals on trade, exports, and future purchasing commitments.
Tight red meat supplies continue supporting livestock markets.
Lower costs improve competitiveness, but demand remains uncertain.
Corn and soybean shipments continue to move at a steady pace as spring trade flows develop.

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:

Grain shippers face lower freight values thanks to weak soybean exports and strong rail service, but barge traffic and forward Gulf loadings suggest continued uncertainty as harvest ramps up.
The EPA proposal laid out two options: fully reallocate all exempted volumes to the 2026–2027 standards, or reallocate half.
U.S. aquaculture may gain competitive ground as harmful subsidies are phased out abroad, but producers should monitor shifts in import supply chains and trade enforcement closely.
Producers may need to prepare for margin pressure in livestock feeding, while dairy farmers could benefit from stronger product demand.
Farmers await concrete trade commitments from China. Until then, export prospects for soybeans, corn, and sorghum remain uncertain against strong South American competition.
National Sorghum Producers CEO Tim Lust said farmers face a challenging year with strong supply, murky trade conditions, and uncertain access to their largest market: China.