On Tuesday, May arabica coffee (KCK26) closed down by 1.10 cents (-0.37%) at $295.85, while May robusta coffee (RMK26) fell by $79 (-2.09%). The drop in prices was attributed to long liquidation pressure following a recent rally driven by the ongoing conflict in Iran, which has disrupted global shipping through the Strait of Hormuz.
Brazil’s Trade Ministry reported a 17.4% year-over-year decline in February coffee exports, totaling 142,000 metric tons. In addition, coffee inventories on ICE increased to a five-month high of 553,379 bags after hitting a 1.75-year low of 396,513 bags earlier in November. Meanwhile, global coffee production is projected to reach a record 180 million bags for the 2026/27 season, according to Rabobank.
