ICO: Composite coffee price monthly average down 1.7% month-over-month to US$1.5768/lb. in May, driven by decline in arabica prices; coffee shipments from exporting countries totals 8.8 million bags in March

Andrew Rogers

Andrew Rogers

LONDON , June 14, 2012 (press release) – Arabica prices declined further in May compared with their levels in April while Robusta prices recorded a significant rise, triggering a narrowing in the differential between the two types of coffee. As a result, the monthly average of the ICO composite indicator price fell by 1.7% from 160.46 US cents/lb in April to 157.68 in May. This is the lowest level recorded since August 2010. Moreover, price volatility increased only in the case of Robustas.

In terms of market fundamentals, total production of all exporting countries in crop year 2011/12 is estimated at around 131.9 million bags compared with 134.2 million bags in 2010/11. For crop year 2012/13 the second estimate of Brazilian production forecasts a crop of at least 50.4 million bags, an increase of 16% in relation to the previous crop year. Production increases are also expected in other exporting countries, encouraged by the performance of coffee prices in recent years. Far more precise information is needed to establish initial estimates of total production in crop year 2012/13. Nonetheless, the current buoyancy of world consumption should make it possible to maintain a balance between supply and demand. A brief analysis of consumption during the last 22 years is included in this report.

Exports by all exporting countries during April 2012 totalled 8.8 million bags, bringing the cumulative total for the first seven months of coffee year 2011/12 (October 2011 to April 2012) to 60.3 million bags as against 62.8 million bags for the same period in 2010/11, a fall of 4%. The drop in total exports during the first seven months of coffee year 2011/12 is attributable to the reduction in Arabica exports, particularly Colombian Milds and Brazilian Naturals.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.

Share:

About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025

+1 (310) 553 0008

About Cookies On This Site

We collect data, including through use of cookies and similar technology ("cookies") that enchance the online experience. By clicking "I agree", you agree to our cookies, agree to bound by our Terms of Use, and acknowledge our Privacy Policy. For more information on our data practices and how to exercise your privacy rights, please see our Privacy Policy.