Average coffee prices remain at six-year lows: ICO

The ongoing deterioration of coffee prices steadied slightly in November, but the monthly averages of all the International Coffee Organization (ICO) indicator prices remain at multi‐year lows. Furthermore, the daily indicator price dipped below 100 US cents at the beginning of the month for the first time in nearly five years. The ICO composite indicator price averaged 100.99 US cents per pound, 5.6 per cent lower than October and the lowest monthly level in since May 2007. Crop year 2012-13 saw a surplus of production over consumption, with good crops in most major producing countries allowing both exporters and importers to replenish stocks and thus putting downward pressure on prices, the ICO says. However, early indications are that consumption in calendar year 2013 is increasing, and with Brazil in the off‐year of its biennial cycle and some uncertainty over production in other regions, it seems likely that these stocks will be needed to meet consumption prospects. Finally, estimates of the damage caused by coffee leaf rust in Central America point towards a further loss of 1.2 million bags or 9.7 per cent of regional production for crop year 2013-14, reducing the region’s production figure to around 11.2 million.