Coffee market observers see a pending rally in prices of historic scope. Resurgent demand for coffee and climate in growing regions will determine how high prices go in 2021. The International Coffee Organization reported a rise of Arabica prices in December.
The International Coffee Organization’s composite indicator in December increased 4.6% to 114.74 U.S. cents/lb. as prices for Arabica group indicators increased. Brazilian Naturals, which grew 8% to 114.96 U.S. cents/lb., saw the largest increase; it was the highest monthly average since December 2019 when they reached 126.36 U.S. cents/lb. Colombian Milds rose 5.7% to 170.44 U.S. cents/lb. and Other Milds by 4.7% to 157.81 U.S. cents/lb., which are both higher than their average in December 2019.
The ICO reported that Robusta fell by 0.5% to 72.04 U.S. cents/lb. In the first two months of coffee year 2020/21, total exports were 6.5% higher at 20.2 million bags, compared with the same period last year as shipments for all groups declined except Brazilian Naturals, which rose by 23.1% to 8.31 million bags.
Likely due to the impact of the Covid-19 pandemic, imports by ICO importing members and the United States decreased by 4.5% to 129.98 million bags in coffee year 2019/20. While both green and roasted imports declined in coffee year 2019/20, imports of soluble coffee increased by 1% to 14.4 million bags.
Click here to see the full December 2020 Coffee Market Report.
The International Coffee Organization was set up in 1963 in London under the auspices of the United Nations due to the economic importance of coffee. It administers the International Coffee Agreement signed in 1962. ICO member governments represent 98% of world coffee production and 67% of world consumption.