Coffee settles higher on cold weather, tariff threat

NEW YORK — Arabica coffee futures rose on Monday, boosted partly by concern that cold weather in Brazil could damage crops, while potential tariffs on US imports from the world’s top grower were also in focus.

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COFFEE: Arabica coffee settled up 1.4% at $3.017 per pound (Ib).

Dealers said a drop in temperatures in parts of Brazil’s coffee belt had raised crop concerns, while the market also considered the potential imposition on Friday of a 50% tariff on shipments from Brazil to the US.

Dealers said the tariff could bring the flow of coffee from Brazil to the US to a halt, forcing US coffee manufacturers to source more expensive supplies from Colombia, Central America, and East Africa.