Arabica coffee falls to 3-week low on Dollar strength

Arabica coffee futures on Intercontinental Exchange (ICE) fell to a three-week low on Wednesday, weighed partly by improved near-term supplies in the physical market.

Coffee prices Wednesday settled mixed, with arabica falling to a 3-week low.  Wednesday’s rally in the dollar index to a 3-1/4 month high weighed on coffee prices.

May Arabica coffee on Wednesday closed down -5.20 (-2.85%), and May ICE Robusta coffee closed up +7 (+0.33%).

Dealers said improved near-term supplies in Brazil, Colombia, and Honduras had dragged prices.

They also noted more favourable weather had boosted the outlook for Colombia’s 2023/24 crop.

ICE-certified stocks rose after several sessions of declines, although by only around 4,000 bags. But there was a fresh amount of around 38,000 bags at the exchange for grading.

May robusta coffee rose $7, or 0.3%, at $2,159 a tonne.