ICO monthly composite price posts record increase

The International Coffee Organization’s (ICO) composite indicator price has its largest monthly percentage increase since May 1997, according to the ICO ‘s February Monthly Coffee Market Report. The monthly average of the ICO composite indicator price jumped by 24.4 per cent in February to 137.81 US cents per pound. Coffee prices have climbed to a similar level experienced in November 2012, with the drought in Brazil fuelling concern for the 2014/15 world coffee crop. With several coffee growing regions around Minas Gerais, Brazil, receiving little or no rain during critical development months, harvests are suffering. The resulting price volatility exhibited by the market, is having adverse effects for both growers and consumers. The International Coffee Organisation’s (ICO), composite daily price has increased by 50 per cent, from less than 100 US cents per pound in late 2013, to a high of 176.37 cents per pound. Arabica prices have been the most significantly effected, with the monthly average of Colombian Milds, Other Milds and Brazilian Naturals registering increases of 29.6 per cent, 30.8 per cent and 30.5 per cent respectively.  These prices are at their highest level since the third quarter of 2012. Robustas recorded a more modest increase, up 9.3 per cent to 95.90 US cents per pound, reaching their highest level since May 2013.