Arabica coffee prices are rising, supply is tightening, and there is also the risk of increased tariffs.

Due to the decrease in exchange inventory highlighting global supply tightness, and market concerns that the United States may impose a 50% tariff on Brazil, the Arabica coffee futures prices in the New York market rose. The most active contract rose by 3.5% at one point, the largest increase in two weeks. On Wednesday, Arabica coffee stocks in exchange-regulated warehouses fell for the fourth consecutive day to a near four-month low, indicating tight supply in the near future. Trade company Sucafina pointed out in a report that although Brazil's coffee harvesting progress is smooth, exports from this major global coffee-producing country are still slow. With the uncertain prospect of tariffs, producers in Brazil tend to hoard coffee beans during the winter to try to obtain higher returns.