Arabica coffee prices rise as supply tightens and tariff risks increase

As the exchange inventory decreases, highlighting a tightening global supply, and concerns grow that the U.S. may impose a 50% tariff on Brazil, Arabica coffee futures prices in the New York market have risen. The most active contract rose by as much as 3.5%, marking the largest increase in two weeks. On Wednesday, Arabica coffee inventories in the exchange's regulated warehouses fell for the fourth consecutive day, reaching a nearly four-month low, indicating recent supply tightness. Trade company Sucafina noted in its report that although coffee harvesting in Brazil is progressing smoothly, exports from this major global coffee producer remain slow. Due to the uncertain tariff outlook, producers in Brazil tend to stockpile coffee beans during the winter season in hopes of achieving higher returns