Continuation of the Taxation Maintains Coffee Price Gains on Tuesday Morning (18)

Market Remains Pressured by Commercial Uncertainty

Coffee prices continued to post moderate gains on international exchanges on Tuesday morning (18). Futures prices remain under pressure but are supported by the continuation of substantial U.S. tariffs on Brazilian beans.

Last Friday (14), the White House released new guidance for removing the reciprocal 10% tax on U.S. imports of Brazilian coffee, but kept in place the additional 40% tariff (in effect since August of this year).

A report from Carvalhaes Office highlights that, under this new scenario, Brazilian coffees are at a strong disadvantage compared to their main competitors when entering the U.S. market. “Maintaining the 40% tariff on the purchase of our coffee by American industries and importers is highly damaging to Brazilian producers and American consumers. We need to improve dialogue and continue negotiating with the U.S. government. Other market fundamentals remain the same: climate uncertainties continue to affect production in Brazil and in other producing countries, and global stock levels remain low,” the document added.

According to market analyst and director of Pharos Consultoria, Haroldo Bonfá, the continuation of the heavy tariff creates a major opportunity for Vietnam’s robusta coffee, which is subject to zero tariff, in addition to forecasts of lower Conilon crops in Brazil in 2026 (following a high-volume harvest this season). “The taxation does not cause Brazil to lose competitiveness, but it opens doors for Colombia and Vietnam,” the analyst said.

Around 9:20 a.m. (Brasília time), arabica was trading with a gain of 470 points at 407.25 cents/lb for the December/25 contract, an increase of 310 points at 379.70 cents/lb for the March/26 contract, and a gain of 350 points at 362.25 cents/lb for the May/26 contract.

Robusta recorded an increase of USD 204, quoted at USD 4,453/ton for the November/25 contract, a gain of USD 35 at USD 4,518/ton for the January/26 contract, and an advance of USD 27 at USD 4,395/ton for the March/26 contract.

By: Raphaela Ribeiro

Source: Notícias Agrícolas