What is the expected price of coffee?
Coffee is expected to trade at 400. USd/Lbs by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 439. Arabica coffee beans are easily the most popular type of beans, making up about 60% of the world’s coffee production. These beloved beans originated in Ethiopia, where they’re still grown today. They offer a sweet, complex flavour and are known for their smoothness.Coffee Market Summary. The global coffee market size was estimated at USD 269. USD 369. CAGR of 5.As the birthplace of Arabica coffee, Ethiopia produces around 7. Ethiopia’s top coffee-growing regions are Sidamo, Yirgacheffe, and Harrar. The country primarily produces Arabica coffee beans, with main varietals including Typica, Heirloom, and Bourbon.Situated in South America, Brazil is the top producer of coffee. They produce 2,68 million metric tons of coffee on average every year. Brazil has also held onto its first-place position as the world’s largest coffee producer for over 150 years.Prices for coffee have soared, fueled largely by volatile weather that’s reduced crop harvests among major growers like Brazil and Vietnam, according to analysts.
Is coffee a good investment now?
The demand for coffee is expected to continue to grow, making it an attractive investment for those looking for long-term growth opportunities. Arabica coffee it is the world benchmark for coffee futures contracts that trade on the Inter Continental Exchange (ICE).Coffee is primarily traded on the Intercontinental Exchange (ICE), with Arabica and Robusta coffee beans being traded on this exchange. Arabica coffee futures are also traded on the New York Mercantile Exchange (NYMEX).For most investors, commodities like coffee work best as a small part of a diversified portfolio, rather than a primary investment strategy. But if you’re fascinated by the global coffee market, its price swings, and the economics behind it, it’s definitely a space worth watching.Arabica coffee sees almost a 50% price increase since early August. Coffee futures topped $4 a pound and touched the highest since February as an extended price rally driven by worries over tight supplies and trade tensions forced traders to exit the market.The Coffee Market Is Growing Rapidly The coffee market is expected to reach US$96. Out-of-home revenue – generated in restaurants and bars – will touch US$376.
Will coffee prices go up in 2026?
Moving forward, the coffee market is expected to remain highly volatile. While some forecasts suggest potential price corrections by late 2025 or 2026, the underlying structural supply constraints, particularly the projected widening Arabica deficit, indicate that significant price fluctuations will persist. Price Volatility Risk Coffee prices are susceptible to shifts in global supply and demand. Adverse weather conditions (such as droughts, frosts, or hurricanes), labour disruptions, or political instability in producing countries can significantly impact output.The Coffee C Futures contract, traded on the Intercontinental Exchange (ICE), is the global benchmark for Arabica coffee prices. It represents the expected price of coffee for future delivery, allowing buyers and sellers to hedge against market fluctuations.Coffee prices have surged to levels not seen in years. In fact, Arabica coffee futures, which largely dictate global green coffee prices, rose over 70% in 2024, peaking above $4.But by 2050, rising temperatures could shrink the global area suitable for growing coffee by half. And at least 60 percent of all coffee species — including arabica, the most popular bean — are at risk of going extinct in the wild due to climate change, deforestation and disease.
Why are coffee futures up?
We’ve seen some increases in disease and some decreases in yield that have lowered supply, and basic economics 101 — when supply goes down, prices go up,” he said in an interview on Monday. Coffee prices have remained high amid concerns of dry weather in Brazil, a major coffee-producing country. Price Forecasts and Market Outlook Looking further ahead, the bank expects prices to normalise to $2. Trading Economics projected that coffee prices will reach $3. Q1 2025 and rise further to $3. January 2026.
Will coffee prices fall?
Coffee prices are continuing to fall according to Intercontinental Exchange (ICE), with the price registered on 17 June 2025 the lowest recorded in almost five months. According to Dr Gerald Kyalo, the commissioner in-charge of coffee development at the Ministry of Agriculture, Animal Industry and Fisheries (Maaif), the fall in coffee prices is a result of production surge from Brazil and Vietnam, which are the top two coffee-producing countries.In April 2025, the U. S. These tariffs have increased the cost of coffee at the point of entry into the U. S.
Are coffee futures a good investment?
Futures contracts provide exposure to coffee price volatility and can be profitable if an investor correctly predicts price changes. However, they also carry a significant amount of risk because of the potential for large fluctuations in price due to factors like weather events or shifts in global demand. Investors can invest or trade Coffee through Futures, Exchange Traded Funds, CFDs and Spread betting platforms. Some of these products are leveraged products. Make sure you understand how leverage works before you dive in. Interested in Commodities?