Coffee prices were trending positive on international stock exchanges, posting gains of more than 2% on Friday morning (11). According to Barchart, President Trump's decision to increase tariffs on Brazilian products to 50% is boosting Arabica coffee prices, as concerns grow that higher tariffs will disrupt Brazilian coffee supplies.

A bulletin from the Carvalhaes Office points out that the fundamentals in the coffee market remain the same: historically low stocks in both producing and consuming countries, erratic weather, and a precarious balance between global production and consumption. Regarding the tax, we will have to wait and see the developments of this imposition, which hinders and punishes the centuries-old coffee trade between Brazilians and Americans.

Researchers at Cepeamesmo emphasize that, given tight national and global stocks, the progress of the harvest in Brazil and the consequent increase in spot supply have been putting pressure on prices. Field activities are progressing well and, in the case of robusta, are already moving into the final phase.

Around 9:00 am (Brasília time), arabica was trading up 405 points at 289.90 cents/lbp for the July 25 contract, up 680 points at 294.60 cents/lbp for the September 25 contract, and up 645 points at 288.55 cents/lbp for the December 25 contract.

Robusta was down US$149 at US$3.623/ton for the July 25 contract, up US$68 at US$3.388/ton for the September 25 contract, and up US$63 at US$3.337/ton for the November 25 contract.

Source: Notícias Agrícolas