Coffee prices have declined steeply since mid-January 2020, with the International Coffee Organisation composite indicator reversing gains from December.
In its January 2020 report, published in early February, the ICO said its composite indicator averaged 106.89 US cents/lb as prices for all group indicators fell.
At the time of writing, the C price had fallen further, below 100 US cents/pound, to 98 cents/pound.
The ICO said the 2020/21 Brazilian crop, which would be an on-year of its biennial Arabica cycle, and broader macroeconomic uncertainty exerted negative pressure on the market.
Exports in the first three months of coffee year 2019/20 decreased by 5.8 per cent to 29.01 million bags compared to 30.78 million bags in 2018/19. During this period, shipments of Arabica fell 10.1 per cent to 18.28 million bags, but Robusta increased by 2.7 per cent to 10.73 million bags.
The decline in Arabica exports was driven largely by a fall in shipments of Other Milds and Brazilian Naturals, of 13.8 per cent to 4.22 million bags and of 13.3 per cent to 9.95 million bags, respectively.
However, exports of Colombian Milds rose by 3.7 per cent to 4.12 million bags. While global production is expected to fall by 0.9 per cent to 168.71 million bags, total consumption is projected at 169.34 million bags in 2019/20. This would result in a projected deficit of 0.63 million bags for 2019/20.
After two months of increases, the ICO composite indicator fell by 8.9 per cent to 106.89 US cents/lb in January 2020. The daily price of the ICO Composite ranged between 99.78 US cents/lb on 29 January and 115.18 US cents/lb on 2 January.