July arabica coffee (KCN26) on Monday closed down -0.90 (-0.31%), and July ICE robusta coffee (RMN26) did not trade as UK markets were closed for the May Day holiday.
Arabica coffee gave up an early advance on Monday and settled lower, weighed down by a stronger dollar. Prices initially moved higher on Monday, supported by concerns about the escalation of the US-Iran war, which could keep the Strait of Hormuz closed and disrupt global coffee supplies. The closure of the strait has tightened coffee supplies by increasing global shipping rates, insurance, fertilizer, and fuel costs, and raising costs for coffee importers and roasters.
