The International Coffee Organization said Covid-19 presents ‘considerable downside risks to the coffee price.’
In their most recent report on the market, the ICO said its composite indicator continued its downward pattern in February 2020, averaging 102 US cents/lb as prices for all group indicators dropped.
Nevertheless, the differential between Colombian Milds and Other Milds greater than doubled to 10.93 US cents/lb.
International exports in January 2020 totaled 10.29 million bags, compared to 11.14 million bags in January 2019, and shipments in the first four months of coffee year 2019/20 dropped by 5.8 percent to 39.53 million bags.
Exports from the world’s two most prominent coffee-producing regions declined in the period from October 2019 to January 2020. Shipments from South America dropped by 9.8% to 19.86 million bags and from Asia and Oceania by 5.4 percent to 12.21 million bags.
Nevertheless, exports from Africa grew by 9.5 percent to 4.38 million bags, as shipments from the region’s three largest producers all increased, and shipments from Mexico and Central America rose by 1.7 percent to 3.07 million bags.
“In 2019/20, world coffee consumption is approximated to be greater than the global output by 0.48 million bags, but the Coronavirus presents considerable downside risk to global coffee consumption,” the ICO concluded.