Arabica Coffee 4/5 Jul '25 (XFN25)
Arabica Coffee 4/5 Futures Market News and Commentary
July arabica coffee (KCN26) on Thursday closed down -5.05 (-1.80%), and July ICE robusta coffee (RMN26) closed down -73 (-2.05%).
Coffee prices retreated on Thursday amid a stronger dollar. Â The dollar index ($DXY) climbed to a 2-week high on Thursday, undercutting most commodity prices, including coffee.
On Wednesday, robusta coffee rallied to a 7-week high, and arabica climbed to a 1-week high amid tightness in ICE coffee inventories. Â ICE robusta inventories fell to a 2-year low of 3,642 lots on Wednesday. Â Also, ICE arabica coffee inventories fell to a 2.5-month low of 471,831 bags on Tuesday.
Smaller exports from Brazil are supportive of coffee prices. Â On Tuesday, Cecafe reported that Brazil's April green coffee exports fell -1.3% y/y to 2.76 million bags. Â
The ongoing closure of the Strait of Hormuz has disrupted global coffee supplies and is bullish for prices. Â The closure of the Strait has tightened coffee supplies by increasing global shipping ra... Read more
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