The price of robustas raised to a near-record high, above the 120.00 US cents per pound mark, according to the September coffee market report from the International Coffee Organisation (ICO).
The ICO Composite Indicator Price (I-CIP) averaged 153.13 US cents per pound in September, posting a median value of 152.74 US cents per pound and fluctuating between 147.86 and 160.17 US cents per pound.
Intra-day volatility of the I-CIP followed a consistent downtrend, reaching 6.3 per cent, a 0.7 percentage point decrease between August and September.
Arbitrage, as measured between the London and New York Futures markets, narrowed by 1.8 per cent to 44.41 US cents per pound in September.
Global green bean exports in August 2023 totalled 9.36 million bags, as compared with 9.07 million bags in the same month of the previous year, an increase of 3.2 per cent.
Green bean exports of the Robustas amounted to 3.47 million bags in August 2023, as compared with 3.22 million bags in August 2022, up 7.3 per cent.
South America’s exports of all forms of coffee increased by 13 per cent to 4.98 million bags in August, while exports of all forms of coffee from Mexico and Central America were down 2 per cent to 1.23 million bags as compared with 1.26 million in August 2022.
Exports of all forms of coffee from Asia and Oceania decreased by 14.9 per cent to 2.72 million bags in August 2023, but were up 1.3 per cent to 41.28 million bags in the first 11 months of coffee year 2022/23.
Total exports of soluble coffee decreased by 4.6 per cent in August 2023 to 0.89 million bags from 9.3 million bags in August 2022, while exports of roasted beans were down 39.9 per cent in August 2023 to 58,226 bags, as compared with 96,937 bags in August 2022.
World coffee production decreased by 1.4 per cent, year-on-year, to 168.5 million bags in coffee year 2021/22; however, it is expected to bounce back by 1.7 per cent to 171.3 million bags in 2022/23.
World coffee consumption increased by 4.2 per cent to 175.6 million bags in coffee year 2021/22. It is expected to increase by 1.7 per cent to 178.5 million bags in coffee year 2022/23. As a result, under the current circumstances, the world coffee market is expected to undergo another year of deficit, with an estimated shortfall of 7.3 million bags in coffee year 2022/23.
To read the full ICO September coffee market report, click here.