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
Seasonal boxed beef softness does not change the tight-supply outlook — leverage remains closer to the farm gate heading into 2026.
Trade uncertainty—especially regarding soybeans—continues to weigh on future outlooks, even as farm finances and land values remain resilient.
Strong export demand supports feed grain prices, but drought risk and seasonal patterns favor disciplined early-year marketing.
Corn export strength remains a key demand anchor, while China’s continued involvement in soybeans and sorghum bears close watching for price direction.
The U.S. Meat Export Federation plans to expand its global market presence in the New Year and says it is focusing its appeal on the growing middle class worldwide.
Preserving equity through active risk management remains critical in a volatile, supply-driven market.

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:

Benchmark machinery costs against those of similar-sized, high-performing operations to inform equipment and investment decisions.
Record pace corn exports are helping stabilize prices despite softer global grain production and ongoing supply competition.
Broader export demand helps stabilize prices and supports stronger marketing opportunities over time.
A narrower Section 1071 rule could reduce regulatory pressure on ag lenders while keeping credit available in rural communities.
Rising production underscores the importance of marketing discipline and margin protection as milk supplies expand.
RealAg Radio host Shaun Haney explains why the 2026 USMCA review could directly affect dairy access, produce competition, and export reliability for U.S. farmers and ranchers.