Coffee on the boil

The drought in Vietnam could push coffee prices higher because it threatens the harvest. The article says Vietnam’s harvest could fall by as much as 30%, which would reduce global supply of robusta beans and add upward pressure on prices.

Vietnam matters because it is the world’s biggest grower of robusta beans. A significant drop in Vietnam’s harvest directly affects the global supply of robusta, which can influence overall coffee prices.

Robusta beans. The article specifically notes Vietnam is the world’s largest grower of robusta, so the drought’s impact is concentrated on that bean variety.

According to the article, the Vietnam harvest could fall by as much as 30% due to drought conditions.

Falling exports from Indonesia—driven by higher domestic consumption—reduce the amount of coffee available on world markets, which can add further pressure to push coffee prices upward.

Together, a smaller Vietnam harvest and reduced Indonesian exports tighten global supply of robusta beans. That combined supply squeeze increases the likelihood of higher coffee prices.

Investors should watch reports on the Vietnam coffee harvest (drought updates and production estimates) and Indonesian export and domestic consumption data, since those factors are highlighted as drivers of supply and price pressure in the article.

Yes, supply pressure from a reduced Vietnam harvest and falling Indonesian exports could influence coffee commodity prices and any investments tied to coffee markets. The article points to these supply-side risks as potential drivers of price movements.