International Coffee Organization's composite indicator up 1.9% in September compared with August, driven by price increases in arabicas; average price for 2011-2012 coffee year at US$1.6982/lb., down 17.4% from year-ago period
October 4, 2012
– The ICO composite indicator increased slightly in September, up 1.9% on the previous month. This performance was driven by Arabicas, with all three group indicators registering price increases, while Robustas fell by 1.5%. This led to a widening in the arbitrage between the New York and London futures markets of 9.6%. The average price of the ICO composite indicator for coffee year 2011/12 was 169.82 US cents/lb, which is 17.4% lower than the 205.65 US cents/lb recorded in 2010/11. Volatility for all coffee groups also increased in September.
In terms of production, coffee year 2011/12 has now ended, with a total volume estimated at 134.3 million bags, effectively unchanged on the previous year. This is because the downturn in production normally associated with the biennial cycle of Arabica production in Brazil has been entirely offset by increased production in other countries.
Exports in August 2012 totalled 9.2 million bags, compared to 7.8 million in August 2011. This brings total exports for the first eleven months of coffee year 2011/12 to 99.6 million bags, a 2.7% increase on 97 million for the same period in 2010/11, and a record level for this time of the year.
Finally, the International Coffee Council met in London from 24 to 28 September 2012, incorporating a Seminar on the impact of certification on the coffee supply chain from an economic, social and environmental perspective. The Seminar emphasised that there are costs incurred by farmers as well as benefits arising from certification, and that certification should be seen as a tool that can improve standards for farmers, rather than as a goal in itself. Presentations and other relevant information can be found on the ICO website at www.ico.org/seminar‐certification.asp