Global Coffee Prices Hit Record Highs Due to Supply Shortages and Trade Tensions

Severe weather in key producing countries and U.S.-Colombia tariff threats drive arabica coffee prices to unprecedented levels.

Arabica coffee prices surged to nearly $3.74 per pound, marking a record high driven by tight supplies and production concerns in Brazil, the world's largest producer.
Brazil's buffer stocks are critically low, with only 500,000 bags remaining compared to the usual 8 million, as drought and weather challenges persist.
Robusta coffee, used primarily in instant coffee, also saw significant price increases, hitting its highest levels since at least 1977, fueled by limited output from Vietnam and India.
U.S.-Colombia trade tensions added to market instability, as former President Trump threatened tariffs on Colombian imports, the U.S.'s third-largest coffee supplier, before walking back the measures.
Global coffee markets are expected to record a fourth consecutive deficit this season, with farmers in major producing countries holding back sales in anticipation of further price gains.