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Brazil to boost global coffee surplus in 2026/27, says Hedgepoint

Written by Hedgepoint Global Markets | Mar 12, 2026 12:41:27 PM

Every year, the Market Intelligence team at Hedgepoint Global Markets publishes detailed reports on the global outlook for key agricultural commodities, analyzing factors such as supply, demand, weather, international trade, and price dynamics. 

 

Throughout the blog, you can already follow content dedicated to different markets — and in this 2026 special, we have gathered the main insights for coffee, highlighting trends that are expected to influence these sectors in the coming months. 

For coffee, the analysis is conducted by Laleska Moda, the company's Market Intelligence analyst, responsible for monitoring supply and demand fundamentals and the impacts of climate on global production. 

This year, the weather played a decisive role. "Despite the initial delay, the rains came at the right time to ensure consistent blooms. Even with irregular productivity, the total volume should be high and capable of helping to partially replenish global stocks, which are currently at very low levels," he says.  

Domestic demand continues to favor the use of Conilon, given the price differential and the current arbitrage. 

 

Conilon remains strong despite falling productivity  

 

For Conilon/Robusta, although there is a natural reduction after the record crop of 25/26, the previous increase in area and the favorable climate should sustain high production. This should keep both domestic demand and exports firm. 


Laleska reinforces that the scenario remains favorable for Robusta consumption globally.  
 
"International stocks of Robusta remain tight, and arbitrage continues to encourage roasters to substitute Arabica. Brazil should continue to lead this supply," he explains.  

 

International markets: suspended tariffs relieve some of the pressure on prices

 

The analyst points out that the recent suspension of tariffs on arabica coffee removes one of the main bullish factors seen at the end of 2025. This opens up space for US stocks to recover and could help increase ICE certified stocks. 

"With the tariffs suspended, some of the pressure that had been sustaining prices has diminished. Now, the focus is almost entirely on the development of the Brazilian crop - the main risk factor and market direction in 2026," says Laleska. 

 

Prices should remain low, but with high volatility  

 

Even with the downward trend for arabica and robusta due to the probable oversupply, Hedgepoint warns that the market will continue to be volatile. Global stocks remain low, producers are selling at a slow pace and any climatic shock could quickly reverse the curve. 

"We are in a scenario that suggests lower prices, but they are still extremely sensitive. Any change in supply, whether in Brazil, Colombia or Vietnam, could bring sudden movements to the market," explains the analyst. 
 
More recently, increased tensions in the Middle East have also raised new doubts about supply. "With the Strait of Hormuz closed by Iran and conflicts ongoing, vessels are anchored in the Persian Gulf or redirected to other routes, while also avoiding the Suez Canal, a key point for the maritime coffee trade," points out Moda.  

 

 Climate risk remains on the radar: El Niño could affect 2026  

 

 Climate models from IRI and NOAA indicate a 50-60% chance of El Niño in the second half of 2026. The phenomenon could affect several origins:  

 

    • Central America: risk of less rain and reduced hurricane activity
    • Southeast Asia: possible losses in Vietnam and Indonesia
    • Brazil: higher temperatures and greater humidity in winter, affecting harvest and post-harvest


    For Laleska Moda, climate risk is the element that raises the alarm about supply. "El Niño could alter productivity in key origins. Even with a good harvest in Brazil, the global balance will also depend on the weather in various producing regions”. 

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