Fundamental supply and demand principles could fuel a decline in coffee prices over the coming months.

Coffee harvests in Vietnam and Brazil hit record levels this quarter, helping allay supply constraints prompted by surging global demand for the commodity. Moreover, Indonesian coffee farmers are reporting their biggest spike in output in roughly 16 years, bolstering stockpiles.

Meanwhile, worldwide economic uncertainty is affecting demand for coffee. This confluence of an uptick in supplies and a downturn in demand could increase supplies of the coffee bean used in instant beverages and espressos, Bloomberg reports.

Analysts forecast global coffee production could climb more than 2.3 percent this year from 2010, hitting nearly 56 million bags. Coffee prices had risen over the past few years, prompting headaches for food retailers who had to scramble to implement business cost reduction programs to offset the precipitous price jump.

"We have record world production and I'm not optimistic on demand," J. Ganes Consulting president Judith Ganes-Chase affirmed. "We'll probably need to say goodbye to the bull market for a while," she added.

While a drop in coffee prices is positive news for consumers, businesses that previously raised prices to offset the uptick could also benefit, experts say.

On the New York Mercantile Exchange on Thursday, coffee futures declined by 0.11 percent to trade at roughly $2.17 per pound.