LONDON: Robusta coffee futures rose to a three-month high on Wednesday as U.S. roasters scrambled to secure supplies after the U.S. government imposed a 50% tariff on imports from Brazil.
Coffee
Robusta coffee futures rose 0.2% to $4,701 a metric ton by 1044 GMT after earlier setting a three-month high of $4,741.
Dealers said the recent run-up in prices had led to a pick-up in the flow of coffee from producers such as Indonesia.
Tariffs imposed by the U.S., climate change, and a smaller crop in Brazil are driving coffee prices higher, the executive director of the International Coffee Organization (ICO) told Reuters on Tuesday.
Arabica coffee futures lost 1.5% to $3.6670 per lb, slipping back after setting a 3-1/2 month high of $3.8710 on Monday.
Cocoa
New York cocoa was up 0.7% at $7,665 a ton.
Dealers said the market was consolidating after falling more than 10% during the last couple of weeks but concern about weak demand may limit the scope of any rebound in prices.
There are also signs that the U.S. was moving to exempt some cocoa producers from tariffs, including potentially Ecuador and Indonesia.
The U.S. has agreed in principle to exempt Indonesian exports of cocoa from the 19% tariff imposed by President Donald Trump since August 7, Indonesia’s top trade negotiator said on Tuesday.
London cocoa rose 0.6% at 5,352 pounds per ton.
Arabica coffee hits 2-1/2 month high, sugar edges up
Sugar
Raw sugar rose 0.55% to 16.50 cents per lb.
Brazil’s national crop agency Conab on Tuesday cut its forecast for sugar production in the 2025/26 season to 44.5 million metric tons, citing bad weather conditions impacting cultivation of sugarcane.
White sugar gained 0.6% to $491.20 a ton.
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