KC N26: 292.00 – 285.55 ***note new contract month***
N26 / U26: 9.85 – 10.20 *** note new contract spread***
Tariffs: The Gift that Keeps on Giving
I spoke yesterday with a fellow coffee professional about what the last few years in the trade have felt like. As someone who started in imports coming out of COVID, they said it finally feels like the market has a bit of calm. The speed with which I found wood to knock on is rivaled only by Sebastian Sawe’s finishing kick.
As many are aware, we’re entering the next phase of tariff merriment: trying to get those funds back from the federal government through CBP’s CAPE portal. I’ve included our latest customer communication at the bottom of this week’s note; the TL;DR is that patience is a virtue. We’re doing everything we can and will keep you informed as we see progress.
Quick recap from our producing partners: Central America remains largely sold out. In the days leading into First Notice Day, we did see a number of exporters fixing prices on behalf of producers, though this was more a function of financial settlement than physical availability. In South America, as the crop picks up, reports out of Colombia show a slow, slightly underwhelming mitaca. Coupled with upcoming elections and persistent political unease, differentials for the second crop remain well supported. In Peru, coffee is starting to flow and exporters are offering fresh shipments with a refreshing amount of gusto. On the other side of the continent, Brazil’s lowlands are beginning harvest. Weather continues to be favorable for cherry maturation, harvesting, and drying. All good signs.