Coffee prices know new data

According to figures released by the ICO (International Coffee Organization), the continuing deterioration of coffee prices stabilized slightly in November, despite the average monthly prices of four indicators of coffee groups remain at minimum.
The average composite indicator price was 100.99 cents/lb, representing a decrease of 5.6% compared to October and its lowest monthly level since May 2007. Moreover, the daily indicator price fell below 100 U.S. cents/lb at the beginning of the month, for the first time in nearly five years. The composite indicator price improved slightly over the month, mainly due to some resistance shown by Robusta and ended in November at a level of 104.30 cents/lb.
The crop year 2012/13 had a surplus production towards consumption, with good crops in most major producing countries want to allow the exporters or importers to replenish stocks, putting downward pressure on prices.
The most significant drop was seen in Colombian Milds, which fell 6.9% compared to October, its lowest monthly average since July 2007. Other Milds and Brazilian Naturals also declined, with declines of 5.2% and 6.4%, respectively, corresponding to its lowest monthly average since December 2008 and May 2007, respectively. Robusta fell 4.8% to 79.71 cents/lb.
These depressed prices triggered reactions of governments in both exporting countries in recent weeks. On 22 November, the Brazilian government adopted measures to grant debt relief to coffee producers, while, on November 27, the president of Colombia announced that the government would continue to provide subsidies to producers through the system PIC (Income protection for Coffee) as a result of low prices.
Also in Vietnam, there were calls for the government to provide funding to store the grain in order to support the prices of Robusta.
The total production for crop year 2012/2013 remains at around 145.2 million bags, an increase of 9.8% over 2011/2012. In 2013/14, Brazil is the year of arresting its two-year cycle, with the estimated 47.5 million bags in production, a decrease of 6.5% compared to 2012/2013. Adverse weather conditions in Vietnam and Indonesia damaged the production, although it is expected that Colombia can benefit from their on-going recovery. Estimates of damage caused by coffee rust in Central America point to a further loss of 1.2 million bags, or 9.7% of regional production for the crop year 2013/14, reducing the value of production in the region to about 11.2 million.
Total exports in October, the first month of the new coffee year was 8.5 million bags, representing a decrease of 9.6% compared to October 2012. The biggest drop was seen in Robusta, estimated at 864.092 bags less than the previous year, with exports from Vietnam and Indonesia to slow down considerably, since the producers have retained the sale of their harvest.
Decreases of 183.620 bags and 144.397 bags were observed in the Other Milds and Brazilian Naturals, respectively. Exports of Colombian Milds, on the other hand, were higher, 288.243 bags.
Source: Hostel Vending Portugal