In April 2019, the ICO composite indicator fell by 3.2% to 94.42 US cents/lb, which is the lowest monthly average since July 2006 when the price reached 88.57 US cents/lb. Prices for all group indicators fell in April 2019. Low prices discouraged sales in March 2019, and world coffee exports amounted to 10.98 million bags, 3.8% lower than in March 2018. Shipments in the first half of coffee year 2018/19 increased by 4.1% to 63.15 million bags, reflecting the ample supply of coffee on the international market. Shipments of Brazilian Naturals rose by 18.4% to 21.7 million bags, and Colombian Milds grew by 8.6% to 7.95 million bags. Exports from Brazil in the first half of coffee year 2018/19, fuelled by significant growth in its harvest and encouraged by a depreciation in the exchange rate, increased by 26.5% to 21.29 million bags, driving the growth in global exports. Between April 2018 and March 2019, world exports rose by 4% to 124.72 million bags. The exports in this period coincide with the crop year for a number of countries, including Brazil and Indonesia, the world’s largest and fourth largest producers.
Coffee prices continued their downward trend as the monthly average of the ICO composite indicator fell to 94.42 US cents/lb in April 2019, 3.2% lower than in March 2019 and 16.1% lower than in April 2018. This represents the lowest monthly average composite indicator since July 2006 when it reached 88.57 US cents/lb. In April 2019, the daily composite indicator moved within a range of 91.79 US cents/lb and 97.25 US cents/lb. The fall to 91.79 US cents/lb on 17 April was the lowest daily price since 1 August 2006 when it was 88.77 US cents/lb. Market fundamentals are one of the main drivers of the current low prices as coffee year 2018/19 production exceeds consumption by 3.69 million bags. This is the second consecutive season of surplus with a cumulative total of 8.35 million bags.
