Having risen sharply in early July 2019, coffee prices have slipped back to well below 100 cents/pound on the international market
Data released by the International Coffee Organization (ICO) regarding developments in coffee prices in July indicated that the monthly average of the ICO composite indicator rose by 3% to 103.01 US cents/pound (lb) in July 2019, which was the highest monthly average since November 2018.
However, the daily composite indicator, which started at a high of 107.87 US cents/lb on 4 July, fell to 98.57 US cents/lb by the end of the month.
In June 2019, world coffee exports rose by 2.8 per cent to 10.94 million bags compared to June 2018, while exports in the first nine months of coffee year 2018/19 rose by 6.5 per cent to 97.28 million bags.
World production in coffee year 2018/19 increased by an estimated 1.9 per cent to 168.77 million bags, led by an 18.5 per cent increase in Brazil’s production for the crop year ending March 2019.
The ICO said global consumption in 2018/19 grew by an estimated 2.1 per cent to 164.84 million bags. Although consumption growth outpaced production, the cumulative surplus over the last two seasons rose to 8 million bags.
The ICO composite indicator averaged 103.01 US cents/lb in July 2019, 3 per cent higher than in June 2019. This marked the first time the average price reached over 100 US cents/lb since February 2019 when the price averaged 100.67 US cents/lb.
The daily composite indicator reached its highest point, 107.87 US cents/lb, on 4 July, but slowly declined over the next few weeks. It reached 98.57 US cents/lb on 31 July. Concerns over frost that supported prices in late June and early July dissipated by the end of the month.
At the time of writing the price had slipped to around 93 US cents/lb.