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Barchart
Barchart
Rich Asplund

Higher Shipping Costs Boost Coffee Prices

May arabica coffee (KCK26) today is up +5.30 (+1.81%), and May ICE robusta coffee (RMK26) is up +68 (+1.90%).

Coffee prices are climbing today, with 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 today.

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