Coffee prices rallied slightly in July, supported by the possibility of frost in Brazil’s coffee-growing regions, before fallin undefined
g back down by the end of the month, according to the International Coffee Organization’s (ICO) Monthly Coffee Market Report.
The monthly average of the ICO composite indicator increased by 1.2 per cent in July, to a level of 118.93 US cents per pound.
This was mostly due to the performance of Robustas, which increased by 4.9 per cent compared to June, averaging 95.21 US cents per pound.
The arbitrage between Arabicas and Robustas has also narrowed further, with the price differentials between the ICO’s three Arabica group indicators and the Robustas group indicator all at their lowest level since December 2008.
Furthermore, certified stocks on the London futures market have fallen to their lowest level since October 2007, indicating a sustained appetite for Robusta coffee.
Total production in crop year 2012-13 is currently estimated by the ICO at around 144.5 million bags, a 7.7 per cent increase on 2011/12.
The ICO expects higher levels of production in most exporting countries, with the exception of several countries in Central America which have been adversely affected by the outbreak of coffee leaf rust in the region.
Total exports in June 2013 amounted to 8.6 million bags, 9.5 per cent less than in June 2012.
Exports of Robustas, particularly from Vietnam and Indonesia, were estimated to be significantly lower, down 35.2 per cent and 54.8 per cent respectively.
However, total exports by all exporting countries for the first nine months of coffee year 2012-13 amounted to 84.3 million bags, a 3.4 per cent increase on the same period last year.