Robusta prices dropped to their lowest levels in more than five years last month, the latest figures from the International Coffee Organisation (ICO) has revealed. The Robusta group daily price fell 5.8 per cent to a low of 74.1 cents in January, the lowest monthly level since May 2010. The ICO is attributing the drop to anticipation of a high supply expected from Vietnam, with the new crop on its way to market and significant carry over from last year. The ICO said the drop is reflective of broader market trends. “This dip coincided with a broader rout in commodity prices, led by the collapse in oil prices,” said the ICO. “Coffee prices recovered slightly towards the end of the month, but remain at very low levels.”
Vietnam exports are estimated at 2 million 60-kilogram bags in December, the highest monthly volume since March 2015. Despite this high, shipments for the coffee quarter, October through to 31 December, were still down 11 per cent on the year prior. Indonesia also exported significantly less in the four months ending 2015, with a 23.4 per cent decrease from the world's second largest producer of Robusta. The ICO reports that the average monthly Arabica price was also lower in January, despite a recovery in the last week. Colombian Milds, Other Milds and Brazilian Naturals were down 3.3 per cent, 2.4 per cent and 2 per cent. Total exports in December 2015 came to 9.3 million bags, 1.3 per cent more than December 2014. This brings exports for the first quarter of the coffee year to 26.9 million bags, a 2.6 per cent increase on the year prior.
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