Coffee and cocoa prices are expected to decline next year as bumper harvests boost global surpluses, though agricultural markets remain increasingly vulnerable to geopolitical risks, according to a new Rabobank report.
After this year’s record-breaking rally, arabica coffee prices are projected to stabilize between $2.50 and $3.50 a pound, with short-term volatility likely to persist, Rabobank analysts wrote. Prices surged to a record above $4 earlier this year, driven by concerns over reduced output in top producer Brazil and by US tariffs that have curbed shipments from the South American nation.
The bank expects the coffee market to shift to ...