Arabica coffee prices fluctuate, traders are focusing on the risk of frost in Brazil.

Arabica coffee is fluctuating in the New York market, with traders assessing the risk of a cold front affecting Brazil's main producing regions. The most active contract briefly rose by 0.9%, reversing a previous 2.1% decline. Recent futures prices have been highly volatile, mainly due to the threat from the United States to impose a 50% tariff on Brazilian goods, including coffee, next month. While most coffee harvesting conditions in the producing regions remain favorable, Meteorologist Nadiara Pereira from Climatempo predicts that a new cold front will affect the central and southern regions of Brazil in the second half of this week. "The risk of this cold front has decreased, but the models may continue to fluctuate, creating weather uncertainty in the market," said Sucafina trader Ilya Byzov in a report. "If weather is not a major factor, the market's focus will shift back to the threat of a 50% tariff on Brazilian coffee exports to the United States."