Futal fulfillment contracts on the New York Stock Exchange increased by up to 2.3% on Monday, while recording more than 80% compared to last year
New record They noted the future Arabica coffee contracts following US President Donald Trump’s threat to impose duties in Colombia, a development that has increased the uncertainty in the coffee market which is facing significant challenges due to limited supplies worldwide.
Trump ordered his government over the weekend to impose duties and sanctions on Colombia following Bocota’s initial decision not to allow two military aircraft to land on the country that transported illegal immigrants from the US.
However, shortly thereafter, the Trump government informed that it would currently suspend the imposition of measures after the two countries reached an agreement on the return of exported immigrants.
But the only threat was enough to step up the uncertainty about Arabica coffee loads, especially at a time when the most active contracts for future fulfillment (SMEs) for this variety have been ejected in the middle of of limited harvest Great producers of countries.
Colombia is the third largest coffee producer in the world and the second largest in the Arabica variety preferred for specific blends. The US is also the largest market in the country as absorb at least 40% of Colombia exportsaccording to data from the US Department of Agriculture.
The rise in SME prices also showed how easily any brown trade upheavals could further trigger market volatility. The SMEs on the New York Stock Exchange increased up to 2.3% on Mondaywhile recording more than 80% up compared to one year ago. Limited production in large countries producers, such as Brazil and Vietnam, have influenced the supply of the world market, which according to the US Department of Agriculture is estimated to be moving at a low 25 years in the period 2024-2025.
Source: Skai
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