Coffee Market Tightens as Global Supplies Shift

Strong global demand and falling stocks suggest continued price volatility for U.S. coffee buyers despite record world production.

PR Coffee 1280.jpg

Market Day Report

NASHVILLE, Tenn. (RFD-TV) — Global coffee supplies are expanding in 2025–26, but tightening stocks and shifting production patterns continue to affect prices and availability for the U.S. market, according to USDA’s latest Coffee: World Markets and Trade report. World coffee production is forecast at a record 178.8 million bags, yet global consumption is rising nearly as fast, keeping ending stocks on a downward trajectory for the fifth consecutive year.

For the United States, the world’s largest coffee importer, supply dynamics remain critical. USDA raised U.S. coffee bean imports to 23.4 million bags for 2024–25, reflecting higher domestic consumption. With global ending stocks projected to fall to 20.1 million bags, coffee prices remain elevated, with the International Coffee Organization’s composite price index nearly tripling over the past several years.

Production gains are concentrated outside the Western Hemisphere. Indonesia’s coffee output is rebounding sharply, led by a 1.7-million-bag increase in Robusta production as weather and labor availability improve. Vietnam continues its recovery, boosting Robusta supplies, while Ethiopia posts record output on higher-yielding varieties. These gains offset declines in Brazil and Colombia, where drought, heat stress, and excessive rainfall reduced Arabica production.

Brazil remains the world’s largest producer, but its 2025–26 crop is forecast down 2.0 million bags, tightening high-quality Arabica supplies favored by U.S. roasters. With consumption still rising globally, USDA expects prices to remain sensitive to weather and production risks heading into 2026.

Farm-Level Takeaway: Strong global demand and falling stocks suggest continued price volatility for U.S. coffee buyers despite record world production.
Tony St. James, RFD-TV Markets Specialist
Related Stories
Farm Bureau economist Danny Munch discusses the USDA’s request for feedback on data and research, how such requests work, and what farmers should know about submitting comments before the Thursday, April 9 deadline.
Georgia Ag Commissioner Tyler Harper explains the growing threat of invasive hornets in his state and what Southeastern growers should watch for this spring.
Fertilizer relief may be limited despite the reopening of the Strait of Hormuz this week. AgriSompo’s Brooks York discusses marketing strategies, crop insurance considerations, and other tips for producers navigating volatility this planting season.
$2 million project tests fogging system to stop the virus in poultry facilities
Overall, the report suggests a shift toward more comfortable supply levels, with demand emerging as a key factor to watch in the months ahead.
Sponsored
Matt Dolch with Syngenta discusses rootworm pressure, the latest trait technologies, and how corn growers can plan for 2027.

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:

Hiring may ease slightly, but labor shortages remain persistent.
Price volatility is driving shifts in demand and supply innovation.
RealAg Radio host Shaun Haney explains shifting global trade dynamics and what they could mean for agriculture and energy markets.
Rising diesel and energy costs are squeezing farmers and rural communities, increasing production expenses and raising concerns about consumer demand for beef even as U.S. meat exports regain the Australian market.
Rising input costs may squeeze margins and shift planting decisions. Scott Metzger with the American Soybean Association discusses fertilizer market pressures and what is at stake for farmers as planting season ramps up.
Reduced driver supply may increase freight costs this season.