Coffee Jul '26 (KCN26)
Coffee Futures Market News and Commentary
May arabica coffee (KCK26) on Wednesday closed up +13.40 (+4.64%), and May ICE robusta coffee (RMK26) closed up +82 (+2.37%).
Coffee prices rallied sharply on Wednesday, hitting 3.5-week highs. Â Concerns that a prolonged US-Iran war will keep the Strait of Hormuz closed and disrupt global coffee supplies sparked short covering in coffee futures on Wednesday. Â 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. Â
Signs of tighter robusta coffee supplies are bullish for robusta coffee prices after ICE robusta inventories fell to a 16-month low of 3,755 lots on Tuesday.
On Tuesday, arabica coffee fell to a 7-week low amid expectations of a record Brazilian coffee crop. Â On March 19, Marex Group Plc projected a record 2026/27 Brazilian coffee crop of 75.9 million bags, surpassing Sucafina's forecast of 75.4 million bags (+15.5% y/y). Â On... Read more
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