Federal Reserve News 21 August 2025

January 21, 2026, 3:46 AM EST. Coffee prices fell sharply Tuesday, with March arabica closing down 2.48% and robusta down 1.87%, pressured by forecasts of rain in Brazil's key coffee regions improving crop conditions. Brazil's coffee production outlook was raised by 2.4% to 56.54 million bags for 2025 by Conab, easing dryness concerns. Vietnam, the largest robusta producer, reported a 17.5% rise in coffee exports for 2025, while its output is also projected to increase by 6%. Despite short-term inventory lows supporting prices, the overall outlook for ample supplies from Brazil and Vietnam weighs on the market. Global coffee exports have slipped slightly, but USDA expects world production to reach a record 178.8 million bags in 2025/26, with a rise in robusta offsetting an arabica decline.