Coffee Finds Support On Dollar Weakness And Smaller Global Supplies

Coffee prices Tuesday settled moderately higher, with robusta posting a 1-week high.  A weaker dollar Tuesday sparked short-covering in coffee futures.  Also, signs of smaller global coffee supplies supported prices after the International Coffee Organization (ICO) reported that global 2022 coffee exports during Oct-Mar fell -0.1% y/y to 66.25 mln bags.  

Dry weather in Brazil is providing continued support for coffee prices.

July arabica coffee KCc2 rose 2.05 cents, or 0.9%, at $2.1795 per lb, with the market regaining some ground after falling by nearly 3% on Monday.

Dealers said a diminishing outlook for production in Colombia after heavy rains and related quality concerns had helped to support prices.

Coffee trader Comexim said in a report that the market seemed to be locked in a wide range, with average prices much above pre-pandemic levels.

July robusta coffee LRCc2 rose $8, or 0.4%, at $2,115 a tonne.