Robusta coffee prices have taken a significant plunge in recent weeks. This decline is largely attributed to market volatility and an abundance of supply. Recently, the price of Robusta coffee on the London exchange dropped by about 4.3% to around $3,320 per ton. This follows a period where prices had initially surged, reflecting the complicated nature of the coffee market.
Several factors have played a role in this price drop. One key reason is the recent increase in Robusta coffee stock levels, which rose sharply by 35.8% from June to July 2025. The high stock levels point towards an oversupply, which has put downward pressure on prices. As prices fell, they also contrasted sharply with the rising prices of Arabica coffee, which experienced a notable increase around the same time.
Recent Robusta coffee stock levels surged by 35.8%, indicating an oversupply that has pressured prices downward amidst rising Arabica costs.
The weather also greatly impacted the coffee markets. Typhoon Ragasa was expected to bring beneficial rain to Vietnam, a vital producer of Robusta coffee, but it missed the area altogether. This situation raised concerns about the potential impact on Robusta crop yields. While the typhoon skipping Vietnam could lead to supply shortages in the future, the current abundance is drowning out those fears.
Overall, the coffee market remains influenced by external elements like weather patterns and geopolitical tensions. For example, U.S. tariffs on Brazilian goods have created uncertainty in Arabica supply, and so affecting the coffee trade landscape.
However, despite such challenges, the abundance of Robusta coffee has kept prices in check, resulting in the recent drop.
As a result, the dynamics within coffee markets reflect ongoing shifts. The interplay between high Arabica prices and strong Robusta supply continues to create complex market conditions, affecting both production and pricing strategies in the coffee industry.