The Coffee Market - September 2011

However, daily indicator prices throughout the month showed a marked downward trend. The composite indicator price, which had increased and reached 234.26 U.S. cents per pound on September 1, fell to 190.95 on September 30, representing a decrease of 18.5%. Indicator prices for the four groups of coffee showed the same downward trend in September, and greater volatility than in August. The price of the ICO composite indicator of the September 30 stood at the lowest daily level to date in 2011.

With regard to market fundamentals, it is estimated that in the crop year 2010/11, which has been completed in all exporting countries, production was 133.6 million bags, with global consumption in the calendar year 2010 of around 135 million bags. The CONAB has released new estimates for Brazil’s production in the 2011/12 crop year which stood at 43.15 million bags, representing a slight decrease from the previous estimate, published in May 2011, which the stood at 43.54 million bags. Based on data provided by Member countries, the total production in crop year 2011/12 could be around 130 million bags.

Source: International Coffe Organization

More on this topic

High Coffee Prices are Here to Stay

February 2011

The January 2011 report by the Central Coffee Organization highlights that demand continues to grow, with supply getting tighter.

Prices and movements in the coffee market are still dominated by weather problems affecting many exporting countries. As a result, coffee prices increased during the month of January, reflecting the current fragile balance between supply and demand.

Global Coffee Market to June 2011

July 2011

In June 2011 another drop in coffee prices was observed, especially in the Arabic variety, following on from a decline in May.

The reduction in the price of Robusta was somewhat less marked than in Arabica, which has lessened the difference between these two types of coffee.

Monthly Report on the Coffee Market in April 2012

May 2012

The monthly average composite indicator price in April was $160.46 cents / pound compared to $167.77 in March. The prices were less volatile in April than in March.

Despite the dip, Robusta coffee prices remain firm and the average sales price in the first 4 months of 2012 is still above that recorded in the fourth quarter of 2011.

Brazilian Coffee Harvest Down 13%

January 2011

The Brazilian Ministry of Agriculture predicted coffee production will fall this year by 13% as trees fall into the lower half of the biennial performance cycle.

As outlined in the article in Martesfinanciero.com, "Farmers will harvest between 41.9 million and 44.7 million bags this year, compared to 48.1 million bags harvested last year, stated Conab on its website, a department from the Ministry of Agriculture specializing in crop forecasting ."