
NEW YORK, Feb 25 (Reuters) - Global coffee production is projected to reach 180 million 60-kg bags in the 2026/2027 season that starts in October, the largest annual supply on record, according to a report by Dutch bank Rabobank released on Wednesday.
The bank said higher arabica coffee production in Brazil, in the wake of good weather, is the main reason for the global forecast.
It said good supply, along with a constant flow of coffee into certified ICE warehouses, is causing the current bear market.
Rabobank said fund selling "exacerbated the price drop a bit too much and that a short-term recovery may occur."
It sees a drop in demand of 2.9% in Europe and 24 non-producing countries in the fourth quarter of 2025.
The bank, however, said U.S. coffee volumes fell only 0.9% in 2025 despite an 11.1% retail price rise.