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SOFTS-Coffee gains 8% in the week as tariffs freeze US-Brazil trade

ReutersAug 8, 2025 6:59 PM

- Coffee futures on ICE rose again on Friday, gaining 8% on the week, as U.S.-Brazil trade remains frozen due to the Trump administration's tariffs, and as exchange stocks continue to slide.

Sugar futures also rose.

COFFEE

* Arabica coffee futures KCc1 settled up 11.55 cents, or 3.9%, at $3.0935 per lb​​, having hit a three-week high of $3.0995.

* Dealers said there are next to no new trades between the U.S. and top coffee grower Brazil after Trump imposed a 50% tariff on Brazilian goods.

* As for existing trades, coffee loaded in Brazil by the August 6 tariff deadline can enter the U.S. without paying the tariff, provided it arrives by October 6.

* The U.S. gets about a third of its coffee from Brazil, and market participants are for now drawing on ICE-certified stocks KC-TOT-TOT, which have fallen to a more than one-year low.

* Dealers also noted arabica options expiration on Friday as a bullish factor for the session.

* Robusta coffee LRCc2 rose 3.9% to $3,510 a metric ton.

SUGAR

* Raw sugar SBc1 ​​​​​settled up 0.24 cent, or 1.5%, at 16.25 cents per lb. The market, however, moved up only 0.4% in the week.

* The UN's Food and Agriculture Organization (FAO) said its sugar price index eased for a fifth consecutive month in July on expectations of increased production in Brazil and India, despite signs of recovering sugar import demand.

* Dealers, however, noted ongoing concerns about the ATR (sugar content) in top grower Brazil's cane in 2025/26.

* France's constitutional court on Thursday blocked the re-introduction of a pesticide accused of harming bees.

* White sugar LSUc1 rose 1.8% to $471 a ton.

COCOA

* London cocoa LCCc2 ​​settled up 6 pounds, or 0.1%, at 5,415 pounds per ton. It gained only 1% in the week.

* New York cocoa CCc2 fell 1% to $7,978 a ton on Friday, but gained 6% in the week as currency variation supported the NY contract.

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