May arabica coffee (KCK26) on Friday closed up +4.50 (+1.56%), and May ICE robusta coffee (RMK26) closed up +21 (+0.56%).How much coffee goes through the Strait of Hormuz? From Grok: "Very little to no coffee physically passes directly through the Strait of Hormuz as cargo in normal global trade ... Coffee is produced mainly in regions like Brazil, Vietnam, Colombia, Indonesia, Ethiopia, and Honduras—none of which are in or export primarily through the Persian Gulf." Sounds like an excuse to me.
Coffee prices moved higher on Friday, with arabica posting a 3-week high and robusta posting a 2.5-week high. Possible global supply disruptions are boosting coffee prices as the war in Iran has halted shipping through the Strait of Hormuz. The closure of the waterway has increased global shipping rates, insurance, and fuel costs, and raises costs for coffee importers and roasters. Also, coffee prices have positive carryover from Thursday when Brazil's Trade Ministry reported that Brazil's Feb coffee exports fell -17.4% y/y to 142,000 MT.
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