Robusta coffee bean prices have recently dropped to their lowest levels in more than a year, reflecting significant changes in the global commodities market. As of June 26, futures for Robusta coffee beans had plummeted to $3,459 per metric ton in London. This price hasn’t been undercut since May 2024. The drop comes after a year of consistent increases across 2024, representing a major turn in the tide of market forces.
A number of factors have played into this dramatic decline. Analysts and market observers have all made note of the fact that supplies from every sector are poised to grow significantly. These extreme projections have contributed to a real bearish sentiment regarding Robusta coffee beans. Since early July, they have been priced near $3,600 per metric ton. That expected increase in supply has put downward pressure on prices, contributing to the recent decrease in prices.
In addition, there was a HUGE spike in Robusta coffee bean prices earlier this year. In today’s Joint Federal Rulemaking, we see a stark turnaround. That is a reflection of how traders are reacting to forecasts calling for supply to soon exceed demand. All this has led to an increase in selling momentum and a decrease in priced valuations. As such, buyers are taking advantage of the reduced prices, but sellers are playing into the changing market.
Industry experts predict that the price volatility may carry on while market conditions shift between supply and demand. The approaching harvest seasons in all of the major coffee-producing countries will be crucial in deciding which way prices head in the near term. If the expected influx of inventories comes through as predicted, more significant price drops could be coming.