Coffee Prices Shift Amid US Tariffs and Weather; Farmer Brothers Reports Q1 Results
Global Coffee Prices React to US Tariffs and Weather Patterns
Global coffee prices showed mixed movements today, November 7, 2025, with Robusta prices declining sharply due to abundant supply, while Arabica prices rose amid US tariff concerns. On the London exchange, Robusta futures for September 2025 delivery fell by 4.32% to $3,320/ton, and the November contract dropped 3.99% to $3,274/ton. Conversely, Arabica prices on the New York exchange increased by over 1%, reaching 287.80 cents per pound for September delivery, driven largely by US President Donald Trump’s decision to raise tariffs on Brazilian goods to 50% starting August 1, 2026, sparking fears of supply disruption from Brazil. Additionally, favourable weather forecasts in Brazil, particularly steady rainfall in key growing regions like Minas Gerais, have eased drought concerns and contributed to recent price drops. Vietnamese coffee exports are projected to reach a four-year high in 2025/26, with a 13.4% year-on-year export increase reported for January-October 2025, further easing Robusta supply pressures despite recent typhoon risks. These market dynamics reflect ongoing volatility influenced by geopolitical trade actions and climatic factors affecting key coffee producers (Tridge, 07 Nov 2025; GCR Magazine, 07 Nov 2025; Trading Economics, 07 Nov 2025).
US Legislative Developments Impact Coffee Tariffs
US Senate Finance Committee Chair Mike Crapo blocked a bill aimed at repealing tariffs on coffee imports, maintaining the current high tariff rates. This move preserves the 50% tariff imposed on Brazilian coffee and other products, which has been a significant factor in recent price fluctuations. In parallel, US Senator Cortez Masto advocated for the No Coffee Tax Act to restore tariffs to pre-Trump levels, effectively 0%, arguing that the high tariffs have contributed to skyrocketing coffee prices domestically (InsideTrade.com, 07 Nov 2025; Goldrushcam, 07 Nov 2025).
Farmer Brothers Coffee Releases Q1 Fiscal 2026 Financial Results
Farmer Brothers Coffee reported its first quarter fiscal 2026 results today, revealing a decrease in gross margin by 400 basis points. While specific revenue and profit figures were not disclosed in detail, the company highlighted ongoing challenges linked to raw material costs and supply chain pressures. This financial update reflects broader cost volatility impacting coffee roasters amid fluctuating commodity prices and tariff-related import costs (GlobeNewswire via Manila Times, 07 Nov 2025).