Good morning and welcome to Markets Desk.
Coffee markets are waking up in a big way, with December arabica futures surging nearly six percent to a seven-and-a-half-month high, while robusta climbed more than five percent. The driver is Brazil's sluggish harvest pace, which is keeping supply tight and giving bulls plenty of fuel to push prices higher.
Shifting to soft commodities more broadly, sugar is telling a different story. After last week's significant rally, prices are consolidating, with New York world sugar finishing essentially flat while London white sugar pulled back nearly three percent. The pressure there comes from expectations that India will step back into import markets, which would ease the supply concerns that drove last week's gains.
And on the trade front, the rhetoric between Washington and Ottawa is sharpening considerably. Canadian Premier Doug Ford is now publicly calling President Trump a dictator as what he's describing as an economic war escalates. Trump is pressing Canada for meaningful concessions on retaliatory tariffs, particularly in agriculture and automotive sectors, and with both sides digging in, the path to resolution looks increasingly complicated for businesses on both sides of the border.
That's the tape. Markets Desk, signing off the floor.
