The International Coffee Organization (ICO) composite indicator decreased by 5.2 percent to an average of 99.05 US cents per pound in June. June is the third consecutive month of a coffee price decrease.
It is the first time since October 2019 that the ICO composite indicator has dropped below 100 US cents per pound. The ICO composite indicator’s daily price spent more than half of the month below that benchmark, varying between a low of 96.79 US cents per pound on 25 June and 101.27 US cents per pound on 8 June.
According to ICO, despite strong exports in the first half of the coffee year, there is a continuous bearish outlook for demand. Global economic growth was further reviewed downwards in June by the International Monetary Fund, and expectations for an abundant harvest in Brazil put downward pressure on prices in June.
Prices for all Arabica groups trended downwards in June 2020, but the Robusta group indicator increased by 0.1 percent to 64.62 US cents per pound.The ICO composite indicator’s volatility decreased by 1.6 percentage points to 6.1 percent over the past month.
International exports reached 10.49 million bags, 14.6 percent lower than in May 2019, but this is still the third-largest volume for May on record. Global shipments in the first eight months of coffee year 2019/20 have fallen by 4.7 percent to 87.96 million bags.
According to data published in March 2020, imports by ICO importing members and the United States increased by 5.1 percent to 11.76 million bags, of which 8.25 million bags originated from exporting countries.
In the first half of the coffee year 2019/20, imports by ICO importing Members and the United States reached 64.22 million bags, 3.7 percent lower than in October 2018 to March 2019.
