According to a Reuters report, some market participants have cited panic in the market amid limited coffee availability. Prices are up around 35 per sent so far this year after soaring 70 per cent in 2024.
Reports of a dry, hot weather system forming over Brazil’s coffee areas helped to drive the new price peaks, as farmers in the world’s top grower are reluctant to sell.
“Panic has finally shown up, prices will continue to rise,” says Bob Fish, Co-Founder of United States (US) coffee franchise Biggby Coffee. “There are only two things that can stop this: one, Brazil and Vietnam have a good yield year (that is not expected until August 2026). Two, there is enough demand destruction in consuming countries because of the price increases.”
There is concern in the market about low stocks in Brazil, with farmers there having reportedly sold approximately 85 per cent of the current crop.
Meanwhile, some believe the next Brazilian harvest could be better than expected. Broker Hedgepoint expects Brazil to produce more coffee in 2025 than in 2024, with 64.1 million bags anticipated for 2025/26 compared to an estimated 63.4 million for the prior season.
Robusta coffee rose 2.4 per cent at $5,697 per ton, having hit its highest on record on 31 January at $5,840.
