ICO: February Coffee Market Slightly Down As Supply Concerns Ease
The International Coffee Organization (ICO) published the February 2017 Coffee Market Report which cites only a slight down market among easing supply concerns. February prices decreased.
The report said:
ICO indicator prices fell slightly across all groups but the decline was most pronounced for Robustas. The controversy concerning the need for Brazil to import Robusta to alleviate supply shortages in Brazil continued when an envisaged import quota was suspended. Meanwhile increasing inventory levels and a favourable outlook for the 2017/18 crop, especially in Brazil somewhat eased supply concerns. Finally, our initial estimate of the value of world coffee exports shows an increase of almost 6% for 2015/16 compared to the year before.
Coffee prices in February decreased slightly with the monthly average of the ICO composite indicator down by 1.0% to 137.68 US cents/lb compared to 139.07 US cents/lb in January. The composite price varied within a range of almost 10 US cents/lb around the mean, from a high of 142.09 US cents/lb on 1 February to a low of 133.02 US cents/lb on 27 February. The price increase noted in January came to a halt as a result of increased stock levels and a positive outlook for the upcoming crop in Brazil.
