
March arabica coffee (KCH25) Friday closed up +3.60 (+1.05%), and March ICE robusta coffee (RMH25) closed up +62 (+1.13%).
Coffee prices on Friday added to this week's sharp rally, with arabica posting a new record nearest-futures high and robusta posting a 6-week high. Lingering global coffee supply concerns are supporting prices and fueling fund buying of coffee. On December 17, Volcafe cut its 2025/26 Brazil arabica coffee production estimate to 34.4 million bags, down by about 11 million bags from a September estimate after a crop tour revealed the severity of an extended drought in Brazil. Volcafe projects a global 2025/26 arabica coffee deficit of -8.5 million bags, wider than the -5.5 million bag deficit for 2024/25 and the fifth consecutive year of deficits.