Coffee prices slightly recover

For the month of December, the monthly report from the International Coffee Organization (ICO) shows that there has been a slight recovery in coffee prices, driven by growing concerns about the outbreak of coffee rust in Central America.
The main coffee producing countries in the region have denounced any extent of damage to the harvest 2012/13. However, these reports have been mitigated thanks to the prospect of a record crop in Brazil in 2013/14, the Conab (the Brazilian government agency responsible for harvest forecasts) had estimated initially between 47 and 50.2 million bags.
In positive trend, total exports in 2012 reached a maximum of 113.1 million bags, worth 8.2% over 2011, driven strongly by the high volume of shipments of Robusta.
The target price ICO daily composite rose slightly in early January a minimum of 132.89 cents/lb to 139.44 US cents/lb, before falling sharply to its original level at the end of the month. The monthly average stood therefore in 135.38 cents/lb, an increase of 3.1% over last December, but still well below the levels recorded in early 2012.
This development was driven by the three groups Arabica, with Colombian Milds, Other Milds and Brazilian Naturals to present an increase of 2.9%, 3% and 3.2% respectively, despite finishing the month with a value below the initiated.
The price of Robusta also increased during the month, with the index of the group to play slightly above 100 cents/lb for the first time since November 2012, before settling at a monthly average of 99.69 cents/lb, 3.2% higher than the level reached in December 2012.
Source: Hostel Vending Portugal