""There's still the climate issue," said Fernando Maximiliano, coffee market intelligence manager at financial-services network StoneX. "These tariffs, they're an additional layer, but we can't ignore the main, structural factor, which is the tighter supply.""
"Over the past month, parts of the state of Minas Gerais, a major coffee-producing region, have recorded about 70% of the average rainfall for this period. Last week, the area got less than half the historic rainfall average, according to the Bloomberg Brazil Weather Analysis."
"Since August of this year, future prices for arabica, a coffee bean variety mostly grown in Brazil, have climbed almost 40% and are near record levels. Prices for Robusta, another variety that's mostly used for instant coffee, have increased about 37%."
U.S. consumers face higher coffee prices after a 50% tariff on Brazilian coffee and threats of tariffs on Colombia, tightening available imports. Stocks of Brazilian beans in the U.S. fell to their lowest level since 2020. Coffee-producing regions in Brazil have experienced persistent droughts since 2020, with parts of Minas Gerais receiving about 70% of typical monthly rainfall and less than half the historic average last week. Futures prices for arabica climbed almost 40% since August and Robusta rose about 37%. Conab expects recent rains to ease plant stress, and leaders opened talks to remove tariffs.
Read at Los Angeles Times
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