September arabica coffee (KCU25) on Monday closed up +4.15 (+1.39%), and September ICE robusta coffee (RMU25) closed up +130 (+4.03%).
Coffee prices settled sharply higher Monday due to adverse weather conditions in Brazil and concerns about tariffs. On Monday, Sucden Financial Ltd said that a severe hailstorm in the Minas Gerais region may have damaged some of Brazil's coffee crops. The markets are also concerned about the threat of a 50% tariff on Brazilian goods if Brazil does not reach a trade deal with the US by Friday, which could potentially raise coffee prices sharply and disrupt supplies from Brazil, the world's largest producer of arabica coffee.
