Coffee prices hit lowest levels since May 2010

Coffee prices continued to fall in November, the International Coffee Organisation (ICO) reported, with the ICO composite indicator price falling 7.3 per cent.  The composite price – an indexed average of Colombian Milds, Other Milds, Brazilian Naturals and Robustas – fell to 136.35 US cents per pound, the lowest level reported since May 2010. All group indicators were said to have decreased, with Colombian Milds, Other Milds and Brazilian Naturals all hitting their lowest levels in two years, dropping 6.2 per cent, 7.7 per cent and 8 per cent respectively. Robustas, which have held more steadily in the last few year compared to Arabicas, weren't spared in November, also saw a drop of 6.5 per cent in November.   Dropping prices come among reports of significant production increases expected for next year. Based on information currently available, the ICO reported it estimates world production to be at 146 million bags for the 2012-13 coffee year, an increase of 8.4 per cent over the 134.6 million bags the world saw in 2011-12. Arabicas are expected to see the highest increase of production, at 10.6 per cent. This is largely attributed to expectations for Brazil's on-year of Arabica production.