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SOFTS-Coffee prices rise as tariffs halt US-Brazil trade

ReutersAug 7, 2025 6:58 PM

- Coffee futures on ICE rose on Thursday, with little sign of any easing in trade tensions between the top consumer United States and the top grower Brazil, while cocoa prices also gained.

COFFEE

* Arabica coffee futures KCc1 settled up 4.4 cents, or 1.5%, at $2.978 per lb.

* Dealers said the market continued to derive support from low certified stocks.

* They noted, however, the upside continued to be capped by concerns that a rise in retail prices in recent weeks is likely to curb demand.

* Coffee trade between Brazil and the U.S. remained frozen after the imposition of a 50% import tariff by the world's largest consumer. Coffee loaded in Brazil by August 6, however, can enter the U.S. without paying the tariff, provided arrival is by October 6.

* Brazilian President Luiz Inacio Lula da Silva told Reuters on Wednesday that he saw no room for direct talks with U.S. President Donald Trump.

* "There is no progress on any kind of agreement," said a Brazilian coffee trader.

* Robusta coffee LRCc2 rose 1.1% to $3,377 a metric ton.

* Coffee trading in Vietnam slowed this week owing to low stockpiles and weaker demand, traders said on Thursday, adding that heavy rains were recorded in Indonesia's coffee growing area in the middle of the harvest.

SUGAR

* Raw sugar SBc1 ​​​​was little changed at 16.01 cents per lb.

* Dealers said the market has been locked in a narrow price interval between 16 and 17 cents for nearly a month.

* They noted concerns that sugar production in the key Centre-South region of Brazil may be lower than previously expected.

* "Given earlier weather concerns and the underperformance of cumulative ATR (sugar content in cane) in the season thus far, risks to forecasts for Brazil's sugar production in 2025/26 remain skewed towards the downside," Rabobank said in a note.

* Brazil exported 3.59 million tons of sugar in July, down 5% from the same month last year, government data showed on Wednesday.

* White sugar LSUc1 was also little changed at $462.50 a ton.

COCOA

* London cocoa LCCc2 ended stable at 5,409 pounds per ton.

* Cameroon surpassed its annual target of 300,000 tons of cocoa for the first time in the 2024/2025 season, marking a significant milestone for the world's fifth-largest producer.

* New York cocoa CCc2 rose 2.9% to $8,061 a ton.

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