
May arabica coffee (KCK26) on Thursday closed up +8.00 (+2.73%), and May ICE robusta coffee (RMK26) closed up +90 (+2.51%).
Coffee prices settled sharply higher on Thursday, with arabica posting a 1-month high and robusta posting a 1-week high. The closure of the Strait of Hormuz has disrupted global shipping and is supportive of coffee prices. The closure of the waterway has increased global shipping rates, insurance, and fuel costs, and raises costs for coffee importers and roasters. Robusta coffee also has support from tighter inventories, as ICE robusta inventories fell to a 2-month low of 4,285 lots on Thursday.