Coffee prices are experiencing a significant rise, driven by various factors in the market. The ICE arabica and robusta contracts have seen notable increases, the highest since May 2025. Frost incidents in Brazil have raised concerns, although the damage is reported to be limited. Tariffs imposed on Brazilian coffee imports have led U.S. buyers to seek alternatives, affecting trade dynamics.
• Arabica futures surged over 25% in August, while robusta increased nearly 30%.
• U.S. buyers are avoiding Brazilian coffee due to a 50% import tariff.
• Brazilian officials expect potential tariff exemptions from the U.S. government.
• New studies on liberica coffee species could enhance climate resilience in coffee farming.
Understanding these trends is crucial for stakeholders in the coffee industry. The rising prices can impact consumers and businesses alike, while the tariff situation complicates trade relationships. As the market evolves, adapting to these changes will be essential for sustainability and growth in the coffee sector.
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