Coffee market ends 2017/18 in surplus; Coffee prices continued their downward trend
The International Coffee Organization, the main intergovernmental organization for coffee that brings together exporting and importing Governments, has released a coffee market report.
In accordance the report, world coffee production in coffee year 2017/18 is estimated 5.7% higher at 164.81 million bags as output of Arabica increased by 2.2% to 101.82, and Robusta grew 11.7% to 62.99 million bags.
The larger supply in coffee year 2017/18 is reflected in increased shipments in August 2018, as global exports increased 6.3% to 11.1 million bags compared to August 2017. In coffee year 2017/18, world consumption is estimated 1.8% higher at 162.23 million bags, but coffee production exceeds this by 2.58 million bags. This surplus has contributed to the low prices this season.
The ICO composite indicator fell to 98.17 US cents/lb in September 2018, 4.1% lower than in August 2018, the lowest monthly average since October 2006 when it reached 95.53 US cents/lb.
Prices for all group indicators fell for the fourth consecutive month in September 2018. The largest decrease occurred in the average price for Robusta, which fell by 5% to 76.70 US cents/lb followed by a decline of 4.4% to 99.87 US cents/lb for Brazilian Naturals.
Coffee prices continued their downward trend as the monthly average of the ICO composite indicator fell to 98.17 US cents/lb in September 2018, 4.1% lower than in August 2018. This represents the lowest monthly average composite indicator since October 2006 when it reached 95.53 US cents/lb.
In September 2018, the daily composite indicator remained below 100 US cents/lb until 28 September when it reached 100.83 US cents/lb. On 18 September, the daily composite price reached 95.87, the lowest value of the month.
Click HERE for the full report
Source: International Coffee Organization
