Coffee Prices Today, August 29: Prices Reverse as Concerns Grow Over Consumer Demand

Coffee prices turned lower on Thursday across major exchanges after J.M. Smucker Co.—owner of Folgers and Café Bustelo—announced further coffee price hikes to offset rising costs from higher tariffs. The news sparked concerns that sustained price increases could weigh on consumer demand.

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Global Coffee Price Update

At the close of trading on August 28:

• London Robusta:
  • September 2025 contract fell 0.97% (-$49) to $5,008/ton.
  • November 2025 contract dropped 1.44% (-$70) to $4,808/ton.
• New York Arabica:
  • September 2025 contract declined 1.54% (-6.05 cents) to 387.75 US cents/lb.
  • December 2025 contract slid 2.02% (-7.8 cents) to 377.5 US cents/lb.

Selling pressure weighed heavily on the market as traders liquidated positions following Smucker’s announcement of another round of price hikes.

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Inventory and Supply Trends

According to Reuters, both robusta and arabica futures retreated after touching three-month highs, though prices remain supported by falling exchange-certified stocks:

• Robusta inventories dropped to 65,520 tons as of August 27, down from 70,120 tons at the end of July.
• Arabica inventories fell to 714,936 bags, the lowest in a year, though nearly 30,000 bags of Mexican coffee recently arrived at New York ports awaiting grading.

In Vietnam—the world’s largest robusta producer—farmers reported that coffee crops were unaffected by Typhoon Kajiki, which passed through the central region.

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Smucker’s Price Hikes and Market Impact

The Wall Street Journal reported that J.M. Smucker will continue to raise coffee prices to offset higher costs from U.S. tariffs.

• The company has already raised retail coffee prices twice in 2025, and expects further hikes this winter as the 50% tariffs on Brazilian coffee imports add more pressure.
• CEO Mark Smucker emphasized that the company’s brands remain affordable compared to café purchases, saying:
  “We expect the coffee category to remain resilient despite inflationary pressure, as consumers continue to stick with their daily coffee habits.”

However, Smucker acknowledged that sales volumes may take a hit. The company is exploring alternative supply sources and restructuring its supply chain to minimize added costs.

Smucker forecast its coffee prices could rise by more than 20% in the 12 months ending April 30, 2026.

• In its most recent earnings report, Smucker posted a loss for the fiscal first quarter as retail coffee profits fell 22%, even though net sales rose 15% year-on-year, largely due to higher selling prices.
• The company confirmed that it raised prices in May and August, prior to the 50% tariff imposed by President Trump on select Brazilian coffee imports.

According to J.P. Morgan, U.S. coffee consumption remains steady despite rising prices, suggesting demand resilience in the face of inflation.