Trump Tariffs and Strong Dollar Push Down International Prices

The coffee futures market faced strong pressure this Friday (April 4), driven mainly by two factors: uncertainty about the impact of tariffs imposed by Donald Trump and the devaluation of the Brazilian real against the US dollar. The risk-averse climate led to significant drops in international exchanges, with arabica and robusta contracts reaching their lowest levels in two to two and a half months, respectively, in New York and London. This reinforces the volatile and uncertain environment for investors in the sector.

According to analyst Eduardo Carvalhaes, the recent declines do not reflect market fundamentals, which remain solid, but are rather immediate reactions to global geopolitical and trade instability—especially China’s response to the new American tariffs. He advises caution, emphasizing that it is still too early to assess the real impacts of the tariff measures, which still lack clarity on how they will be implemented. His recommendation is for market players to act prudently until more details are known.

In the Brazilian domestic market, prices also fluctuated, but behavior varied across the main producing regions. While some areas saw declines, such as Araguari and Guaxupé, others, like Machado and Poços de Caldas, showed slight increases. Despite buyer interest, the prices offered are still not meeting seller expectations, which has made it difficult to close deals. The current scenario is one of waiting and low liquidity, with producers carefully evaluating the best time to trade amid external instability. Fonte: Noticias Agrícolas Mercado do café deixa os fundamentos de lado e sente pressão do tarifaço - Notícias Agrícolas