The primary reason is Brazil, where the largest Arabica harvest in history is expected.
Production is rising, exports are accelerating, and the total global harvest could exceed demand for the first time in five years.
However, the market is not collapsing just yet: exchange warehouse stocks are at minimal levels, and any weather-related issues in Brazil could prop up prices once again.
The drop in prices won't be immediately noticeable on store shelves. Raw material, procurement, and supply costs must come down first, followed by the price of the finished coffee.
Therefore, while a sharp price drop isn't expected, there are now grounds for optimism.
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