ICO market report shows coffee prices have stabilised

coffee prices stabilise

The International Coffee Organization (ICO) has released its January 2022 market report, denoting coffee prices climbed higher in January 2022, reaching 204.29 US cents/lb, as the consistent rise observed in 2021 continues.

The ICO composite indicator of coffee prices has shown a continuous month on month increase for 16 months in a row.

Exports of all forms of coffee in December 2021 totalled 12.12 million 60-kilogram bags, up 8.9 per cent in comparison to 11.12 million bags in December 2020.

The ICO states the increase was driven by Asia and Oceania, up 37.4 per cent at 4.71 million bags, outweighing the 8.5 per cent decrease at 5.61 million bags, seen in South America.

As a result, exports from October to December 2021 saw a 29.7 per cent increase to 11.04 million bags for Asia & Oceania, but down 19.2 per cent for South America at 15.28 million bags in the same period.

Exports from Central America and Mexico were 1.78 million bags from October to December 2021, as compared to 1.38 million bags over the same period in the previous year.

Shipments from Africa were 3.19 million bags in October-December 2021, as compared to 3.00 million bags in the same period of 2020/21.

Exports of Arabica fell slightly in December 2021 to 7.13 million bags from 7.16 million bags in December 2020, while exports of Robusta increased by 25.8 per cent to 4.99 million bags as compared with 3.97 million bags, over the same period, showing some re-balancing of sourcing to offset price rises and low availability of Arabica.

Shipment of green coffee reached 27.54 million bags from October to December 2021 as compared with 28.62 million bags for the 2020/21 coffee year.

The report estimates global output at 168.88 million bags, which falls short of its expectations of world coffee consumption at 167.68 million bags, as compared to 164.46 million for 2019/20, an increase of 2.0 per cent.

The production-consumption gap for 2020/21 is therefore reduced to 1.20 million bags, now more comparable to pre-pandemic gap of 1.95 million bags.

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