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SOFTS-Coffee gains as investors continue to assess US tariffs, Brazil weather

ReutersAug 13, 2025 1:33 PM

- Coffee futures on ICE gained on Wednesday with investors continuing to assess the impact of steep U.S. tariffs on top coffee grower Brazil, and remained mindful of the cold snap in some of the country's growing areas.

COFFEE

* Arabica coffee futures KCc1 rose 1.9% to $3.1420 per lb at 1252 GMT, after touching a six-week high of $3.27 on Tuesday.

* Coffee buyers in the United States have started requesting to postpone imports of Brazilian coffee following a 50% tariff imposed on Brazil's goods by the U.S., local exporters' group Cecafe said.

* Dealers said in the absence of a fresh disaster, coffee has likely hit its highs for now.

* They explained that while the tariff issue will continue to trouble physical traders, it will largely impact premiums and discounts for physical grades, and whether contracts are fulfilled or not.

* Elsewhere, reports of light, spotty frosts in some Brazilian coffee areas contributed to the run-up in prices this week, though the harvest continues to progress well overall.

* Also Cooxupe, Brazil's largest coffee co-operative, said its farmers had harvested 80.4% of their 2025 crop as of August 8, below the 87.3% reported at the same time last year.

* Robusta coffee LRCc2 rose 4.6% to $3,796 a metric ton, having hit its highest in nearly two months at $3,820.

COCOA

* New York cocoa CCc2 fell 2.1% to $8,490 a metric ton, having hit a six-week high of $8,823 on Monday.

* Following poor weather conditions, top cocoa producer Ivory Coast has cut to 1.2 million tons its export contract sales of the 2025/26 main crop from October to March, down from 1.3 million, two council sources told Reuters.

* Dealers, however, cited industry reports saying both Ivory Coast and Ghana have more forward selling of their 2025/26 main crop left to do, with Latin America also selling actively of late, after prices hit near two-month highs.

* London cocoa LCCc2 fell 1.3% to 5,726 pounds per ton.

SUGAR

* Raw sugar SBc1 slipped 0.3% to 16.89 cents/lb, having hit a two-month high of 17.05 cents on Tuesday amid improving demand in the physical markets.

* White sugar LSUc1 was little changed at $486.70 a ton.

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