Tariff fluctuations eased and supply concerns diminished, causing coffee prices to fall into a bear market.

Coffee appears to have entered a bear market area, with prices now dropping to $309.21 per pound, a significant decrease from $430 per pound earlier this year. Earlier, the increase in coffee prices was seen as markets prepared for fluctuations in tariffs and weather issues in major producing areas. However, with the easing of tariff-related fluctuations and concerns about supply disruptions fading, the coffee market may be ending its upward momentum of the past few months and heading towards a correction. According to several media reports, the latest weather forecasts show a reduced risk of frost in coffee growing areas in the states of Sao Paulo and Minas Gerais, Brazil, which has also led to a drop in coffee prices. Over the past seven weeks, strong coffee production and ample supply have continued to put pressure on coffee prices. Coffee prices saw significant increases throughout last year and early 2025. Recent trends in coffee prices The Food and Agriculture Organization of the United Nations has reported that global coffee prices in 2024 have reached the highest levels in years. Sustained droughts in Brazil and Vietnam, as well as heavy rainfall in Indonesia, have affected coffee production. Brazil and Vietnam together account for nearly 50% of global coffee production.