Café: tariff relief does not reduce pressure on prices

The global coffee market is undergoing an adjustment period following the suspension of the additional 40% tariffs on Brazilian beans—except for soluble coffee—announced on November 20. Although the measure brought immediate relief, low certified stocks and in major destinations, coupled with climatic factors in major producers, indicate that prices may remain supported in the short term. The removal of tariffs by the United States initially put pressure on arabica futures, which fell to the lowest level in two months. Subsequently, there was a partial recovery, supported by the scarcity of stocks and the caution of Brazilian coffee growers, who remain reluctant to market large volumes of the 25/26 crop. For Hedgepoint analyst Laleska Moda, "this behavior reinforces the perception that, even with the tariff relief, the available supply for export remains limited." Certified arabica stocks ended the last week at 406.9 thousand bags, a cumulative drop of 54.96% for the year. In the ...