Coffee prices fall again

According to figures released by the International Coffee Organization (ICO), coffee prices suffered further declines in October, with the prices of the four indicators of coffee groups to descend rapidly throughout the month.
The monthly average of the composite indicator price is now at its lowest level since March 2009, and the trend of sharp decline observed in the last two years shows no sign of slowing.
Last October, the average composite indicator price was 107.03 cents/lb, representing a decrease of 4.3% from September and the lowest level since March 2009. In real terms, the composite indicator is now below its level of January 2000, which marks the beginning of the period known as the 'coffee crisis’. It is to admit that in many countries, the amounts received by producers do not cover the unit costs of production, while prices of basic commodities such as food and energy are rising. Coffee is indeed the worst performing agricultural commodity of the past two years, with a downward trend with no sign of reversing.
All four groups of indicators fell sharply over the month. Colombian Milds, Other Milds and Brazilian Naturals fell 3.4%, 2.7% and 2.7%, respectively, to its lowest level since December 2008, March 2009 and July 2009, respectively.
The most significant drop was observed in Robusta, which fell 4.6% to 83.70 cents/pound, its lowest level in three years.
Despite a slight decline in September, total exports for coffee year 2012/2013 reached a record volume of 110.2 million bags, representing an increase of 2.3% over 2011/2012. That volume is 68.5 million bags of Arabica and 41.7 million of Robusta.
The largest increase was recorded in shipments of Colombian Milds, which had an increase of 21.2% to 10.2 million bags, mainly as a result of the on going recovery in Colombia.
Total production for 2012/2013 remains at around 145.2 million bags, an increase of 9.8% over 2011/2012.
Source: Hostel Vending Portugal