
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 Indiaโs 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.
๐ Market Overview
๐ 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.
๐ฎ Price Forecast โ Next 3 Days
- Expected Range for May 2025: USD 1.93 โ USD 2.00/lb
๐ 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.
