Arabica futures hit a record of $3.56 in the Intercontinental Exchange on Monday, Jan. 27, a day after the back-and-forth dustup a day earlier, according to The Wall Street Journal.
The previous record of $3.48 was recorded in early December.
The US imports about 30 percent of its coffee from Colombia.
Colombia agreed to accept the flights after earlier turning back two planes. This prompted President Donald Trump to threaten 25 percent tariffs on Colombian goods
Colombian President Gustavo Petro responded by saying Colombian would impose 25-percent sanction on US goods.
But after several hours of negotiations, an agreement was reached. This resulted in the lifting of the threats.”
Even if tariffs remain lifted, consumers could see higher prices. This is especially true if the uncertainty and volatility around Arabica futures continues
In addition to coffee, primary Colombian exports to the US include crude petroleum, bananas, avocados, and cut flowers.
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