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Barchart
Barchart
Rich Asplund

Supply Concerns Boost Coffee Prices

May arabica coffee (KCK26) on Friday closed up +8.85 (+2.94%), and May ICE robusta coffee (RMK26) closed down -5 (-0.14%).

Coffee prices on Friday extended this week's rally, with arabica posting a 1.5-month high and robusta a 1.5-week high.  The closure of the Strait of Hormuz has disrupted global shipping, tightened global supplies, and is supporting coffee prices.  The closure of the waterway has increased global shipping rates, insurance, and fuel costs, and raises costs for coffee importers and roasters.  Coffee prices fell back from their best levels on Friday, with robusta falling into negative territory, due to a stronger dollar.

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