Commodity Roundup: Traders race to import Brazilian coffee ahead of Trump’s 50% tariff deadline

[Human hand full of dried cocoa seed]
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Commodities traders are rushing to bring Brazilian coffee into the U.S. before a new 50% tariff on Brazilian goods takes effect on August 1.

Some traders are rerouting ships mid-journey and skipping planned port stops to ensure coffee shipments arrive before the tariff deadline [https://seekingalpha.com/news/4466563-coffee-beef-and-orange-juice-prices-in-the-us-could-spike-if-brazil-is-hit-with-a-heavy-tariff-rate], according to a _Reuters_ report.

Newly released data also shows U.S. consumer prices rose in June, with the cost of the tariffs already being passed on—coffee included.

Others are sending some Brazil-origin coffee they have in stock in neighboring countries such as Canada or Mexico, meant for use there, to the U.S. market instead.

Meanwhile, U.S.-based importers are already posting wholesale listing prices that include the 50% additional charge for any shipment arriving after August 1, the report said.

"We redirected some freight to land in the U.S. earlier, something that was headed to a longer journey," said Jeff Bernstein, managing director at coffee trader RGC Coffee. "But for some other cargos, we could not speed up."

Coffee-related companies include Coffee Holding (JVA [https://seekingalpha.com/symbol/JVA]), Dunkin' Brands (DNKN), J.M Smucker (SJM [https://seekingalpha.com/symbol/SJM]), Starbucks (SBUX [https://seekingalpha.com/symbol/SBUX]), McDonald's (MCD [https://seekingalpha.com/symbol/MCD]), Costa Coffee (KO [https://seekingalpha.com/symbol/KO]), Tim Hortons (QSR [https://seekingalpha.com/symbol/QSR]), Nestle (OTCPK:NSRGY), Keurig Dr Pepper (KDP [https://seekingalpha.com/symbol/KDP]), Kraft Heinz (KHC [https://seekingalpha.com/symbol/KHC]), Krispy Kreme (DNUT [https://seekingalpha.com/symbol/DNUT]).

Elsewhere, the downturn at Europe’s cocoa (CC1:COM [https://seekingalpha.com/symbol/CC1:COM]) factories is worsening, as record-high prices continue to dampen demand and squeeze processor margins in the world’s top chocolate-consuming region.

Second-quarter cocoa grindings in Europe likely fell nearly 5% year-over-year, according to the average estimate of seven traders, brokers, and processors surveyed by Bloomberg. This would mark the fourth consecutive quarterly decline and the lowest level for the period since the early days of the pandemic.

Cocoa futures (CC1:COM [https://seekingalpha.com/symbol/CC1:COM]) tumbled below $7,800 per tonne on Wednesday, extending their year-to-date decline to 33%.

MORE ON COFFEE FUTURES, COCOA FUTURES

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* Coffee, beef, and orange juice prices in the U.S. could spike if Brazil is hit with a heavy tariff rate [https://seekingalpha.com/news/4466563-coffee-beef-and-orange-juice-prices-in-the-us-could-spike-if-brazil-is-hit-with-a-heavy-tariff-rate]
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