On Monday, July arabica coffee (KCN26) closed down 2.17% at -6.40, while July ICE robusta coffee (RMN26) fell 1.58% to -55. The decline in coffee prices is attributed to expectations of a record Brazilian coffee harvest, with projections of 75.9 million bags for the 2026/27 season, a 15.5% increase year-over-year.
Vietnam’s coffee exports for January to March 2026 increased by 14% year-over-year to 585,000 MT, adding pressure to robusta prices. In contrast, Brazil’s coffee exports in March decreased by 10% year-over-year to 2.65 million bags, contributing to market support. Additionally, concerns regarding disruptions in the Strait of Hormuz due to ongoing U.S.-Iran tensions are impacting coffee supply and increasing shipping costs.
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