March arabica coffee (KCH24) on Thursday closed up +2.25 (+1.28%), and Jan ICE robusta coffee (RMF24) closed up +25 (+0.98%).
Coffee prices Thursday settled moderately higher as a weaker dollar spurred some short-covering in coffee futures after Wednesday's sell-off to a 1-week low. Coffee prices have been under pressure during the last several sessions as supply fears receded. On Tuesday, the International Coffee Organization (ICO) projected 2023/24 global coffee production will climb +5.8% y/y to 178 million bags due to an exceptional off-biennial crop year. ICO also projects global 2023/24 coffee consumption will rise +2.2% y/y to 177 million bags, resulting in a 1 million bag coffee surplus.
