News

Michael

Apr 15, 2025

Global Coffee Market Dynamics: Shrinking Premiums Amidst Price Surges

Global Coffee Market Dynamics: Shrinking Premiums Amidst Price Surges

The global coffee market is witnessing a significant shift as the gap between speciality and regular coffee prices narrows. With regular coffee prices hitting new highs, the premium for Indiaโ€™s speciality coffees has plummeted to just 10%, a stark decrease from the usual 25%. This report delves into the current market trends, fundamental drivers, and provides a detailed forecast for the coffee market.




๐Ÿ“ˆ Market Overview



๐Ÿ“‰ Key Market Drivers

  • Supply concerns in Brazil and Vietnam are pushing up global prices.
  • Strong export performance from India, with exports crossing USD 1.8 billion.
  • Speciality coffee premiums have decreased due to the narrowing price gap.

โ›… Weather Outlook โ€“ Key Coffee Regions

  • Brazil: Dry conditions expected, potentially stressing crops.
  • Vietnam: Adequate rainfall, favorable for coffee growth.

๐Ÿ”ฎ Price Forecast โ€“ Next 3 Days

  • Expected Range for May 2025: USD 1.93 โ€“ USD 2.00/lb

๐Ÿ“Œ Conclusion & Strategic Recommendations

  • Buyers: Monitor global supply risks and consider securing inventory at current levels.
  • Sellers: Leverage the high market prices to optimize revenue, especially for regular grades.
  • Traders: Stay alert to any changes in weather patterns that could impact production forecasts.
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