Coffee Prices Today, August 28: Sharp Gains as Robusta Surpasses $5,000/ton

Coffee prices posted strong gains across major exchanges on Wednesday, with robusta surging by $171/ton to break the $5,000 mark. The market was buoyed by declining inventories and accelerated buying from U.S. roasters after Washington imposed a 50% import tariff on Brazilian coffee.

---

Global Coffee Price Update

At the close of trading on August 27:

• London Robusta:
  • September 2025 contract jumped 3.5% (+$171), to $5,057/ton.
  • November 2025 contract rose 4.01% (+$188), to $4,878/ton.
• New York Arabica:
  • September 2025 contract climbed 2.54% (+9.75 cents), to 393.8 US cents/lb.
  • December 2025 contract advanced 3.49% (+13 cents), to 385.3 US cents/lb.

According to Reuters, robusta futures hit their highest level in three months, while arabica rebounded close to its 3.5-month high, supported by falling inventories and urgent U.S. restocking activity.

---

Inventory Trends Supporting the Rally

Traders reported that prices are being supported by a steady decline in exchange-certified stocks:

• As of August 26, robusta inventories stood at 66,110 tons, the lowest in one month, down from 70,120 tons at the end of July.
• ICE-monitored arabica inventories fell to 716,578 bags, the lowest in 15 months.

The recent rally has also stimulated coffee flows from producing countries such as Indonesia.

---

Global Trade Developments

The International Coffee Organization (ICO) noted that several factors—including U.S. tariffs, climate change, and reduced production in Brazil—are driving global coffee prices higher.

Meanwhile, Uganda, Africa’s largest coffee exporter (followed by Ethiopia), reported a significant increase in shipments:

• July 2025 exports reached 997,105 bags (60 kg each), up 21.4% year-on-year, compared with 821,593 bags in July 2024.
• Export revenues totaled $250.6 million, a 19.1% increase from last year, supported by higher global prices and stronger domestic output.
• Over the past 12 months through July, Uganda earned $2.3 billion from coffee exports, according to its Agriculture Ministry.

The Ministry credited the surge to a bumper harvest in most coffee-growing regions, particularly in Central and Southwestern Uganda.