Coffee prices have declined considerably since mid-January 2020, the International Coffee Organisation stated in their report.
In their January 2020 report, issued in early February, the ICO said its composite indicator averaged 106.89 US cents/lb as prices for group indications dropped.
The C price had fallen further, below 100 United States cents/pound, to 98 cents/pound, at the time the report was issued.
The ICO said the 2020/21 Brazilian crop, which would be an on-year of its biennial Arabica cycle, and broader macroeconomic uncertainty exerted unfavorable pressure on the marketplace.
Exports in the first three months of the coffee year 2019/20 decreased by 5.8 percent to 29.01 million bags compared to 30.78 million bags in the 2018/19. During this period, shipments of Arabica fell 10.1 percent to 18.28 million bags, but Robusta increased by 2.7 percent to 10.73 million bags.
The decline in Arabica exports was driven mostly by a fall in shipments of Other Milds and Brazilian Naturals, of 13.8 percent to 4.22 million bags and of 13.3 percent to 9.95 million bags, respectively.
However, exports of Colombian Milds rose by 3.7 percent to 4.12 million bags. While global production is expected to fall by 0.9 percent to 168.71 million bags, total consumption is projected at 169.34 million bags in 2019/20. This would result in a predicted deficit of 0.63 million bags for 2019/20.
After two months of increases, the ICO composite indicator fell by 8.9 percent to 106.89 US cents/lb in January 2020. The daily price of the ICO Composite varied between 99.78 US cents/lb on 29 January and 115.18 US cents/lb on 2 January.
