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
RFD NEWS Markets Specialist Tony St. James reviews the USDA’s Farms and Land in Farms 2025 Summary.
Strong corn exports support prices while soybeans lag yearly pace. However, large carryover stocks limit upside despite solid yields.
Lori Stevermer with the National Pork Producers Council reacts to the USDA’s speedline proposal, the new Farm Bill’s fix for California’s Prop-12, and other policy developments impacting the pork industry.
Fuel costs ease over the long term, but fertilizer energy remains volatile.
Lawmakers request information from CEO Scott Stump over sponsorship concerns and potential implications for the organization’s nonprofit status.
Roger McEowen with the Washburn School of Law reviews key highlights from the House Agriculture Committee’s latest farm bill proposal.

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:

Large carry-in stocks across major crops could limit price recovery in 2026/27 unless demand strengthens or weather-related supply reductions occur.
Stable small business confidence supports rural economies, but lingering cost pressures and uncertainty continue to shape farm-country decision-making.
Cotton acres slipping as competing crops gain ground.
Rising Chinese feed output — especially for swine — signals sustained demand for protein meals and feed inputs, even when meat production growth appears modest.
Ethanol output is improving, but weak domestic demand and export headwinds temper optimism about corn demand. Renewable Fuels Association President & CEO Geoff Cooper discusses the latest developments on Federal approval of year-round E15.
Nitrogen and phosphate markets are tightening ahead of spring, keeping fertilizer costs elevated while crop prices lag.