Coffee prices-arabica drops to 2-1/2 week low while robusta falls to a 6-week low

Coffee prices Tuesday settled moderately lower, with arabica posting a 2-1/2 week low and robusta falling to a 6-week low.  A rally in the dollar index Tuesday to a 2-year high undercut most commodity prices, including coffee.  

An increase in U.S. coffee supplies is also negative for prices after the Green Coffee Association on Monday reported that U.S. March green coffee inventories rose +1.0% m/m and +2.5% y/y to 5.82 million bags.

The amount of green coffee stored at ports in the United States, the world's largest consumer of the beverage, increased at the end of March for the first time since August 2021, data from the Green Coffee Association (GCA) showed on Monday.

Dealers said the lockdowns in China due to Covid-19 cases and the war in Ukraine raise concerns about demand.