FX.co ★ Arabica Coffee Futures at Over 1-Week Low

Arabica coffee futures are currently trading near $4 per pound, maintaining proximity to their lowest point since mid-November. This trend follows the abolition of the remaining 40% tariff on Brazilian coffee. It is important to note, however, that this tariff exemption does not apply to soluble coffee. Consequently, discussions between Brazilian authorities and the US government are set to persist on this issue. Concurrently, predictions of suitable weather in Brazil are exerting further downward pressure on prices. Climatempo has forecasted that heavy rain will persist throughout the week in Brazil's coffee-producing regions. These conditions are expected to be beneficial for the development of the upcoming crop.