Silas Brasileiro, president of the National Coffee Council, said inventories in the South American country could decline to just 7 million bags (each weighing 60 kilograms) by the end of 1Q23. Brazil usually has 9-12 million bags in inventory.

In Colombia, the world's second top arabica coffee producer, crops are drowned in too much rain due to persisting La-Nina-related conditions.

Yields are expected to decline in Guatemala, Honduras, and Nicaragua, while Vietnam, the largest robusta supplier, will also see stockpiles tumble because of poor harvest.