Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action, news, and analysis.

Good afternoon. Today is Tuesday, September 16th, and I'm your host, Kim Khan.

At top story so far, coffee futures prices continue to surge in 2025, with both Arabica and Robusta reaching multi-year highs.

The impact is being felt in the U.S. as retail coffee prices at grocery stores have also

spiked. KPMG, chief economist Diane Swank, recently warned that coffee prices could easily

exceed the all-time record as the full effects of the 50% tariffs leviedon Brazil continue

to work their way onto store shelves.

The Bureau of Labor Statistics reported a 20.9% year-over-year increase in coffee prices in the U.S. during August,

with both roasted coffee and instant coffee prices soaring during the month.

Major factors include a lingering drought in Brazil, poor crop conditions in Vietnam,

persistent global supply deficits,

strong demand, and currency fluctuations.

Weather uncertainties for Brazil's 2025-26 harvest have also impacted trading.

The U.S. also faces extra pressure from new tariffs on Brazilian coffee, further raising

import costs and shifting supply chains in a costly way.

Brazil, the largest supplier to the U.S., has seen American buyers reducing new contract volumes

and seeking alternatives, although sourcing options at notably lower prices are limited.

Since the Trump tariffs took effect on Brazilian coffees, green coffee buyers have had to either eat the higher costs,

pass them down towards customers, and or attempt to find

comparable inventory from other producing countries such as Colombia, Peru, or Mexico, Daily Coffee

News said. On the economic front, August retail sales rose 0.6% on the month, outpacing the 0.3%

consensus, and even with the revised 0.6% increase in July. That translates into an August annual rise of 5%.

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