MILAN – Coffee futures are back on the rise after last week’s declines. In yesterday’s session, Monday 17 November, the most active contract for March delivery in New York gained 0.7%, closing at 376.60 cents. The London market saw a surge in prices. In fact, the ICE Robusta’s main contract for January gained as much as 6.2%, rising to $4,483.
Coffee industry operators continue to monitor the weather situation in the main producing countries and the impact of the La Niña phenomenon.
Meanwhile, the executive order signed by US President Donald Trump on 14 November removed the 10% tariff on coffee imported from Brazil.
However, the 40% tariff imposed in August remains in place, continuing to penalise Brazilian coffee in the United States, where it accounts for around 30% of the country’s coffee imports.
The situation is already evident from the statistics on Brazilian coffee exports to the United States, which more than halved (-51.5%) between August and October, based on data from Cecafé.
According to the Brazilian Specialty Coffee Association (BSCA), exports of specialty coffees fell by 55% in the same period to 190,000 bags. The main industry associations have already sounded the alarm and are calling for negotiations to be accelerated in order to reduce tariffs.
According to Cecafé Director General Marco Matos, the White House’s decision puts Brazil in a dramatic situation, as it benefits its main competitors (Colombia, Vietnam and Central American countries), which will now enter the US market at zero tariffs, while Brazilian coffee will continue to be burdened with heavy duties.
This has caused Brazil to lose ground in U.S. coffee blends, Mr. Matos said in a statement reported by Valor International.
“That’s why we’re losing space in blends. Every day that passes, the losses grow, and the [American] consumer is getting used to other coffees,” he lamented.
He emphasized the need “to race against time” to secure a bilateral agreement. “The longer it takes, the harder it will be to regain space in blends,” he noted.
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