ICO composite indicator price hits lowest level since 2009

Coffee prices continued to slide in August, despite a brief bounce at the beginning of the month, according to the International Coffee Organization’s Monthly Coffee Market Report. The monthly average of the ICO composite indicator price dropped to its lowest level since September 2009, as did the monthly averages of the three Arabica group indicators. All four group indicators dropped compared to July, with significant decreases recorded in the three Arabica groups. Colombian Milds, Other Milds and Brazilian Naturals fell by 2.9 per cent, 2.3 per cent and 2.2 per cent, respectively, the report said. A decrease of 1.3 per cent was recorded in Robustas. The arbitrage between Arabicas and Robustas also narrowed in August, with the price differentials between the three Arabica groups and Robustas all decreasing. Total exports in July 2013 reached 9.1 million bags, 6.6 per cent less than July 2012, but total exports for the first ten months of the coffee year are still up 3.6 per cent at 94.5 million bags. In terms of coffee consumption, an increase of 2.1 per cent is estimated in calendar year 2012 to around 142 million bags, compared to 139.1 million bags in 2011. Most of this increase can be attributed to strong growth in exporting countries and emerging markets, which grew by 2.5 per cent and 4.7 per cent respectively, The ICO said. Consumption in traditional coffee‐consuming countries grew by a more modest 1 per cent compared to 2011.