Coffee prices slide as dollar strengthened
May arabica coffee fell 6.25 cents, or 3.4%, at $1.77 per lb, slipping back from the prior session’s two-week peak of $1.8350.
March arabica coffee on wednesday closed down -6.70 (-3.65%), and Mar ICE robusta coffee closed down -19 (-0.92%).
Coffee prices wednesday settled sharply lower as a rally in the dollar index to a 1-1/4 month high sparked long liquidation in coffee futures.
Strong U.S. economic data, however, boosted the dollar and restrained commodities buying, they added.
Certified Arabica stocks at the Intercontinental Exchange fell by more than 25,000 bags said a report after the session’s close. Green coffee stocks in the U.S. also dropped strongly, said the Green Coffee Association later in the day, which could give an impulse to prices on Thursday.
May robusta coffee LRCc2 fell $21, or 1.0%, at $2,049 a tonne.