Coffee is getting cheaper on Friday on news of the cancellation of additional duties on imports of Brazilian agricultural products in the United States.
Arabica futures fell in price by 3.9% to $3.9 per pound during trading in New York.
Robusta futures fell 5% to $4.4 thousand per tonne.
As reported, US President Donald Trump signed an executive order to reduce duty on certain agricultural goods exported from Brazil, including coffee and beef. An additional duty of 40 per cent was imposed at the end of July.
“The market needs to digest this news. Could prices go even lower? Sure, but I don’t think they will go below $3 a pound. I would buy futures on a drawdown,” Reuters quoted a trader who wished to remain anonymous as saying.
According to him, the Arabica market is still in deficit, stock levels are low, plus there are weather risks threatening the crop.