12/10/2026
ICO report: Record Brazilian crop drives coffee prices lower as production rises and global consumption is down by 0.9%
On the supply side, fundamentals remain decidedly bearish, underpinned by Brazil’s record crop. However, rain during harvesting affected quality, creating uneven availability across grades. The ICO also reports a 0.8% decline in global consumption during coffee year 2025/26, driven mainly by weaker demand in North America. The organisation’s statistics further confirm a return to a 3 million-bag supply surplus, following four consecutive deficit seasons between 2021/22 and 2024/25
October 12, 2026
Coffee prices fell sharply in September, against a backdrop of continuing volatility: according to the ICO’s monthly report, published on Friday 9 October, the monthly average of the ICO Composite Indicator Price (I-CIP) declined by 8.7% last month, having risen sharply in July and remained stable in August. The report attributes this decline, first and foremost, to the improved global supply situation, with the arrival on the coffee market of Brazil’s record harvest and a return to a supply surplus after years of deficit.
The report attributes the downturn primarily to improved global supply conditions, driven by the arrival of Brazil’s record crop on the market and a return to a global supply surplus after several years of deficits.
The I-CIP averaged 262.18 cents in September, compared with 287.29 in August and 287.26 in July.
Volatility remained high (10 per cent), al groups recorded negative changes
The Colombian Milds’ and Other Milds’ prices fell 8.1% and 8.8% in September 2026 compared to August 2026, averaging 356.15 and 329.44 US cents/lb, respectively. The Brazilian Naturals’ prices fell 9.9% to 290.19 US cents/lb.
In the same month, the Robustas declined 7.3% to 167.49 US cents/lb. Prices on the London ICE market for the Robustas fell by 8.0% to an average 154.28 US cents/lb, while those on the New York ICE market for the Arabicas fell by 10.4% to an average 280.68 US cents/lb in September 2026.
As the 2025/26 coffee year draws to a close, the report provides an overview of the key factors shaping market dynamics
On the supply side, fundamentals remain decidedly bearish, underpinned by Brazil’s record crop. However, rain during harvesting affected quality, creating uneven availability across grades.
The ICO also reports a 0.8% decline in global consumption during coffee year 2025/26, driven mainly by weaker demand in North America. The organisation’s statistics further confirm a return to a 3 million-bag supply surplus, following four consecutive deficit seasons between 2021/22 and 2024/25.
The climate outlook appears complex, with an El Niño event of historic proportions set to alter weather patterns, particularly in the tropics
In Brazil, the September rains have favoured flowering and the initial fruit-setting of the next Arabica crop, but the weather outlook for the coming months remains uncertain. In Central America, there are fears of drought in Honduras and Nicaragua. The impact of El Niño on crop performance in Asia and Africa also remains to be assessed.
Turning to futures markets, certified stock levels in New York remain extremely low (260,654 bags on 30 September and 252,006 bags on Friday 9 October), although they have recovered somewhat from the all-time low recorded in mid-September (217,646 bags, the lowest level since 1999).
Media reports suggest that Olam and Louis Dreyfus Company are set to replenish stocks by several hundred thousand bags, bringing them to a slightly more reassuring level.
The situation is better in London, where stocks are at their highest levels in the last 10 months
The report also notes, with regard to New York, an increase in net short positions held by non-commercials in the middle of the month, followed by partial covering towards the end of the month.
The report notes that non-commercial traders increased their net short positions in New York during the middle of the month, followed by a partial round of short covering towards month-end.
Backwardation narrowed for front months. This reduced delivery incentives without ensuring a return to contango soon, points out the report.
Meanwhile, total exports by exporting countries of all forms of coffee recorded a strong recovery in August (+14.6 per cent), rising to 12.546 million bags from 10.95 million a year ago.
Arabica exports increased by almost 10% to 7.208 million bags. As expected, the strongest growth was recorded by Brazilian Naturals, up 20.1%, while Other Milds also posted positive growth of 3.2%. Conversely, exports of Colombian Milds fell 5.4%, reflecting the impact of the earthquake in Colombia.
Exports of Robusta rose by almost one million bags (+21.6%), totalling 3.883 million bags.
As a result, cumulative exports during the first eleven months of coffee year 2025/26 reached 130.738 million bags, up 1% from the corresponding period of the previous season.
Arabica exports remained in negative territory overall (-5.2%), with Other Milds representing the only exception. Robusta exports continued to expand strongly (+10.7%), reaching 56.195 million bags.
Finally, the ICO left its 2025/26 forecasts unchanged, projecting production at 183.6 million bags and consumption at 180.6 million bags (-0.9%), resulting in a surplus of approximately 3 million bags.