Coffee Supplies Rise While Costs Weather Threaten Gains

Improved coffee output could strengthen the U.S. supply, but input costs and weather risks keep the outlook uncertain.

Mix of coffee beans and coffee tree blossom for background_Photo by nimon_t via AdobeStock_253446717.jpg

The process of coffee production from blossoms to beans.

Photo by nimon_t via Adobe Stock

NASHVILLE, TENN. (RFD NEWS) — U.S. coffee buyers may see improved supply from Colombia and Costa Rica next season, but USDA forecasts show weather and input costs still threaten recovery. The United States remains the leading export market for both countries.

USDA’s Foreign Agricultural Service projects Colombia’s 2026/27 production at 13.4 million 60-kilogram bags, up 7.2 percent after excessive rain cut the current crop. Exports are also forecast at 13.4 million bags.

Costa Rica’s production is forecast to rise 3.5 percent to 1.2 million bags, while exports reach 1.06 million bags. The United States accounts for more than 40 percent of Colombian exports and nearly 40 percent of Costa Rican shipments.

Growers still face pressure. Colombia reports falling coffee prices alongside rising fertilizer and labor costs. Costa Rica faces higher fertilizer and fuel costs, a strong local currency that reduces growers’ returns, and possible El Niño-related dryness.

Despite larger crops, ending stocks are forecast to be lower in both countries, leaving limited protection against harvest disruptions.

Farm-Level Takeaway: Improved coffee output could strengthen the U.S. supply, but input costs and weather risks keep the outlook uncertain.
Tony St. James, RFD News Markets Specialist
Related Stories
Strong exports support ethanol margins and corn demand.
Kansas State University agricultural economist Dr. Gregg Ibendahl discusses rising diesel prices, the influence of global oil markets, and the potential impact on farmers heading into the spring planting season.
Lower production is tightening honey supplies across markets.
Rising protein demand supports long-term trade in feed and meat.

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:

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.
In the U.S. and Canada, reduced planted acres—not yield losses—led to a decline in potato production, while Mexico saw modest gains due to increased yields and harvested areas.
AFBF Economist Samantha Ayoub discusses the latest data on Chapter 12 farm bankruptcy filings and what the troubling trend signals for the farm economy. At the same time, bigger loans and higher rates are squeezing working capital and increasing financial risk.
Corn demand remains supportive, but weaker soybean buying limits overall export momentum.
Farm numbers still favor small operations, but production, resilience, and risk management are increasingly concentrated among fewer, larger farms.