“`html
As of Wednesday, March arabica coffee (KCH26) closed up by 3.55 (+0.96%), while January ICE robusta coffee (RMF26) fell by 7 (-0.17%). The mixed settlement in coffee prices was attributed to reduced coffee exports from Brazil, where Cecafe reported a 27% year-over-year decrease in November green coffee exports to 3.3 million bags.
Robusta coffee continues to face pressure due to abundant supplies, with Vietnam’s November coffee exports rising by 39% year-over-year to 88,000 metric tons. The USDA projects a 2.5% increase in global coffee production for 2025/26 to 178.68 million bags, expecting robusta production to rise by 7.9% to 81.658 million bags, while arabica is anticipated to decrease by 1.7% to 97.022 million bags.
Additionally, ICE coffee inventories showed a significant drop, with arabica inventories reaching a 1.75-year low of 398,645 bags on November 20, then recovering to a one-month high of 426,523 bags last Friday. ICE robusta coffee inventories also fell to an 11.5-month low of 4,012 lots on Wednesday.
“`
