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2025-07-29 21:40:55
Coffee Market Caught in a Fog: Undecided Brazilian Tariffs Pressure Futures] ⑴ Arabica coffee futures prices fell on July 29th, with the overall market lacking a clear trend as traders awaited the final decision on whether the United States would impose a 50% tariff on Brazilian coffee imports. ⑵ As of 21:19 Beijing Time, Arabica coffee futures fell 1.5% to $2.9720 per pound, erasing a 1.4% gain from the previous trading day. ⑶ Traders noted that Brazil's coffee exports have slowed as the market awaits clarity on whether the United States will impose the 50% tariff on August 1st. ⑷ Coffee industry lobbying groups in Washington have called for coffee to be excluded from the tariffs, arguing that there are no viable domestic substitutes. ⑸ Rabobank noted that the implementation of such a tariff would not only disrupt global coffee trade flows but also dampen US demand, but it is currently uncertain whether the tariff will take effect as scheduled or whether coffee will be exempted. (6) Robusta coffee futures fell 1.4% to $3,263 per ton, after hitting a 16-month low of $3,166 last week. (7) Raw sugar prices rose 0.55% to 16.52 cents per pound, with the market focused on sugarcane and sugar production data for the first half of July in Brazil's central and southern regions, which is expected to increase by 12.5% to 3.3 million tons. (8) London cocoa prices rose 0.8% to £5,442 per ton, despite below-average rainfall in Côte d'Ivoire's main cocoa-producing regions and concerns about potential damage to the main crop from October to March due to a cold snap.
