- Global coffee prices showed a fluctuating trend, supported by intermittent supply tightness and geopolitical disruptions, while capped by improving production outlook.
- Feedstock dynamics remained mixed as weather variations in Brazil and supply concerns supported prices, while higher output expectations and rising supplies limited gains.
- Downstream demand stayed cautious as elevated prices and rising logistics costs due to the Middle East conflict reduced consumption intensity and kept buying activity measured.
Coffee prices moved within a volatile range, influenced by contrasting supply signals and selective trade flow shifts. Support came from tightening availability and export disruptions, while downside pressure persisted due to expectations of higher production and increased supplies from key producers. From the Indian perspective, export volumes declined by 4.47% to 3.84 lakh tonnes in 2025, while export value rose by 22.50% to USD 2,058.06 million, reflecting stronger price realization. Demand conditions remained subdued as high prices reduced discretionary consumption, limiting aggressive procurement and keeping market sentiment balanced.
Additional upward pressure emerged from geopolitical disruptions, particularly the Middle East conflict impacting key shipping routes such as the Strait of Hormuz. This disruption increased freight, insurance, and fuel costs, tightening global supply chains and raising import costs for coffee-consuming regions. Supply uncertainty and logistical delays further supported price gains as market participants reacted to potential shortages and rising transportation costs.