From Seattletimes · · 1m
Coffee glut may not calm price swings
Coffee surplus risks keeping prices volatile despite record bean supply.
In brief
Coffee surplus risks keeping prices volatile despite record bean supply. Coffee market volatility persists as exchange stocks fail to recover from depleted levels. Originally reported by Seattletimes.
Coffee stockpiles at record low
Exchange-certified coffee stockpiles have fallen to their lowest point since 1999.
Price volatility spikes
Coffee futures surged 5.6% on Friday, tracking biggest weekly gain since July 10.
2026-27 crop expected
The 2026-27 coffee season may produce the biggest surplus in years with Brazil's potential record crop.
Exchange delivery challenges
Traders unsure if current futures prices incentivize beans entering exchange warehouses rather than private stocks.
J. Ganes on delivery timing
Judy Ganes, president of J. Ganes Consulting, said the math changed making delivery less sensible.
Brazilian coffee quality
72% of Brazilian coffee bag arrivals passed exchange quality tests in September, an unexpectedly high rate.
Future delivery expectations
Araujo expects 50,000 to 70,000 Brazilian bags could reach exchange warehouses in October.
What matters most
Coffee market volatility persists as exchange stocks fail to recover from depleted levels.
