ICO reports rise in coffee price in January

According to the International Coffee Organization (ICO) January market report, the ICO composite indicator rose by 0.9 per cent to 101.56 US cents per pound as prices for all group indicators increased. After starting at a low of 99.16 US cents per pound, the daily composite indicator increased over the remainder of the month to end at a high of 103.58 US cents per pound on 31 January. While the composite indicator increased compared to December 2018, it is the lowest monthly January price from the last five years. The next lowest was 110.75 US cents per pound in January 2014. Prices remain under pressure given the sufficient supplies from the 2018/19 harvest. The average price for Colombian Milds and Other Milds rose by 1.1 per cent to 129.28 US cents per pound and 128.46 US cents per pound, respectively. Prices for Robusta increased by 0.9 per cent to 78.24 US cents per pound while prices for Brazilian Naturals increased by 0.8 per cent to 102.94 US cents per pound. The ICO says the strengthening of the Brazilian real against the US dollar in January 2019, particularly since its depreciation in September 2018, lent support to coffee prices this past month. Additionally, increased shipments in the first quarter of coffee year 2018/19 indicate that demand remains strong. In the first three months of 2018/19, total exports increased by 8.1 per cent to 30.91 million bags. Exports of all types, except for Other Milds increased in comparison to the first three months of 2017/18. In December 2018, world coffee exports amounted to 10.43 million bags, or 631,800 tonnes, 0.9 per cent higher than in December 2017. Exports of all types, except for Other Milds, increased compared to the first three months of 2017/18 led by shipments of Brazilian Naturals, which increased by 21 per cent to 11.7 million bags. Exports of Colombian Milds rose by 5 per cent to 3.97 million bags, while Robusta grew by 4.5 per cent to 10.28 million bags. Exports of Other Milds fell by 6.4 per cent to 4.96 million bags.