Robusta coffee prices climb to a 2-week high

Coffee prices on wednesday closed sharply higher, with robusta climbing to a 2-week high. A slump in the dollar Wednesday sparked some short-covering in coffee futures. 

Coffee prices were previously on the defensive, with arabica falling to a 4-month low Tuesday, on concern that Russia’s invasion of Ukraine will derail the global economy.

May arabica coffee on Wednesday closed up +6.35 (+3.01%), and May ICE Robusta coffee is up +67 (+3.22%).

Softs analyst Judy Ganes, who is touring Brazilian coffee farms, said crops are looking healthy after good rains earlier this year, but the amount of coffee berries is low. She only sees a production recovery next year.

The amount of green coffee stored at ports in the United States fell by 0.5% at the end of February to 5.76 million 60-kg bags, the Green Coffee Association (GCA) said.

Coffee traders are scrambling to redirect shipments headed for Russia and Ukraine as trade flows to the two countries collapse because of Western sanctions and Kyiv’s move to close its ports.