By Roberto Samora<\/p>\n
SAO PAULO (Reuters) -The global arabica coffee market has surged in August with prices gaining more than 30% on the ICE exchange, driven mainly by steep tariff hikes from the United States, the head of Brazil’s coffee exporters council, Cecafe, said on Friday.<\/p>\n
The 50% tariff imposed on Brazilian coffee by the Trump administration since August 6 has made exports to the U.S. unviable and disrupted markets, Cecafe president Marcio Ferreira said in an interview.<\/p>\n
“In meetings I had with the American side, I made it clear that the tariff hike created an environment of uncertainty and drove coffee prices up globally – and there may be no ceiling,” Ferreira said.<\/p>\n
“The market can’t read where the price peak is,” he added.<\/p>\n
Arabica coffee futures on ICE, traded in New York, were quoted around $3.74 per pound on Friday, up from about $2.80 at the end of July.<\/p>\n
Crop performance in Brazil, the world’s largest producer and exporter of coffee, will not help anytime soon, Ferreira said.<\/p>\n
The 2025 arabica crop collection, nearing completion, has yielded about 10% less than expected, he said, adding that frosts this month are likely to reduce next year’s output.<\/p>\n
As a result of the tariffs, importers are turning to other origins like Central America and Colombia, but are facing higher premiums compared with ICE futures contracts, Ferreira said.<\/p>\n
“This uncertainty and insecurity attracts funds to buy on the exchange, and it’s natural for funds to enter on the buying side \u2014 the market becomes favorable from a speculative standpoint,” he said.<\/p>\n
However, Brazilian coffee is currently seeing “a substantial increase” in European and Asian demand, which is “well above expectations,” Ferreira added.<\/p>\n
That growth isn’t necessarily due to higher consumption in Europe, he said, citing the role of countries like Germany in re-exporting processed coffee to the United States, which applies lower tariffs on European goods.<\/p>\n
(Reporting by Roberto Samora; Writing by Oliver Griffin; Editing by Franklin Paul, Joe Bavier and Hugh Lawson)<\/p>\n","protected":false},"excerpt":{"rendered":"By Roberto Samora SAO PAULO (Reuters) -The global arabica coffee market has surged in August with prices gaining…\n","protected":false},"author":2,"featured_media":89358,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[52874,7426,45,49,48,52876,46,52875],"class_list":["post-89357","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-arabica-coffee","tag-brazil","tag-business","tag-ca","tag-canada","tag-coffee-prices","tag-economy","tag-marcio-ferreira"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/89357","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=89357"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/89357\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/89358"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=89357"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=89357"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=89357"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}