Geopolitical events, such as trade agreements, political instability, and global conflicts, can have a significant impact on coffee prices. Countries that produce the majority of the world’s coffee, like Brazil, Colombia, and Vietnam, are vulnerable to disruptions caused by political shifts, weather-related crises, or labor strikes. These factors can affect supply chains and cause price volatility, presenting both risks and opportunities for coffee traders. Understanding the global political landscape helps traders anticipate market fluctuations and make informed decisions to capitalize on emerging trends or mitigate potential losses.
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