The Market Update explores how this week’s news, weather and other factors are shaping the global coffee trade.
After the aggressive drop in NY during February, we start to see a rebound. Week on week we bounced from 302 to 318.
What’s the driver? Brazil remains key; as Brazilian farmers hold onto stocks we see offers surpassing washed Central prices. For shipments through August 2026 Brazil is currently trading higher than Guatemala. Will coffee be released by the Brazilian farmers? We cannot be certain, however, we remain hopeful that a frost-free winter in Brazil will release the flow.
Prices across all origins are up and availability remains thin. Current crop Costa Rica appears fully sold. Guatemala and Honduras offers have vanished or become very scarce. Peru is a few months away from coming online and, as the only washed mild available, prices have rallied. Indonesia is heavily sold and prices seem to increase daily.
The market inversion has deepened (again) as we see nearby availability vanish. Pray for a bumper Brazil crop! An oversupply scenario could restore some much-needed balance to the supply and demand structure.
Don’t want to miss another Market Report? Sign up for our newsletter here. •
