Coffee Prices Forecast to Drop 30%

Record-high coffee prices are expected to decrease demand, with a potential 30% drop in Arabica coffee futures by year-end. Early signs indicate a substantial harvest in Brazil next year, further contributing to the decline. Robusta coffee prices are also projected to fall at a similar rate. The anticipated decline follows a surge in prices, driven by concerns about reduced production in Brazil, the world's leading Arabica coffee grower. However, experts suggest Brazil could see a significant coffee crop in the 2026/2027 season, leading to increased global supply. Vietnam, the largest Robusta coffee producer, also anticipates increased production, potentially reaching 29 million bags, bolstering the global supply of this coffee type and contributing to the downward price pressure.