ICO: Coffee Market Prices Continued To Climb In December

The ICO composite indicator continued to rise in December 2019, ranging between 111.80 and 123.69 US cents/lb. Prices for all Arabica indicators rose in December 2019, while Robusta prices decreased 0.1% to 73.22 US cents/lb. Firm demand and the current tightness in the market has helped to put upward pressure on prices. Exports in the first two months of coffee year 2019/20 declined by 10.8% to 18.3 million bags. Exports from all coffee groups decreased during this period, except Colombian Milds, which rose by 2.2% to 2.6 million bags. Global coffee output is estimated at 168.71 million bags in 2019/20, 0.9% lower than last year as Arabica production is estimated to decline by 4.1% to 96.22 million bags while Robusta grows by 3.7% to 72.5 million bags. In coffee year 2019/20, coffee consumption is estimated to increase by 1.24 million bags to 169.34 million bags. This would result in a deficit of 0.63 million bags in 2019/20, which puts upward pressure on prices. However, this may be limited as more of the 2019/20 crop enters the market as well as a larger crop is anticipated from Brazil in its 2020/21 crop year commencing in April.

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