The International Coffee Organisation (ICO) in its coffee market report, shows that the composite price of coffee averaged US $99.97 cents/lb (0.45kg) in June 2019, 7.1 per cent higher than in May 2019.
According to the report, that was the first increase in the monthly average since January 2019, when prices rose by 0.9 per cent to US $101.56 cents/lb.
The reports says daily composite indicator ranged between US $95.17 cents/lb on 18 June and US $105.25 cents/lb on 28 June. “The daily price rose above 100 US cents/lb for the first time since 18 February 2019 on 30 May and remained above that level on 9 out 20 days during the month of June,” it says.
In May 2019, world coffee exports rose by 19.4 percent to 11.6 million bags compared to May 2018, it says. The growth, according the report, was led by shipments of Brazilian Naturals coffee type, which rose by 65.4 percent to 3.5 million bags. However, in May 2018, shipments from Brazil were well below expectations due to a nationwide trucking strike that delayed delivery of coffee to ports. Brazil’s May exports averaged 2.73 million bags from 2013 to 2017.
According to the report, Robusta exports grew by 8.3 per cent to 4.05 million bags in May 2019 compared to the same month one year ago. Significant growth in Robusta shipments from Brazil, where exports of green Robusta rose from 46,621 bags to 376,257 bags as well as increases in exports from Tanzania and Uganda offset the 5.1 per cent decline in Vietnam’s green Robusta shipments. Exports of Colombian Milds grew by 6.1 per cent to 1.15 million bags while Other Milds increased by 4.4 per cent to 2.9 million bags.
Meanwhile the report says global exports in the first eight months of coffee year 2018/19 reached 86.57 million bags, an increase of 7.5 per cent compared to the same period one year ago. Shipments of Brazilian Naturals rose by 21.9 per cent to 28.22 million bags while Colombian Milds increased by 6.8 per cent to 10.13 million bags. Robusta exports increased by 3 per cent to 30.65 million bags in October 2018 to May 2019 while Other Milds fell by 3 per cent to 17.57 million bags.
The reports says Global coffee production is estimated at 167.75 million bags in coffee year 2018/19, compared to global consumption of 164.64 million bags. Although the increase in imports during the first six months of the coffee year indicates ongoing demand growth, it has not kept pace with the rise in global production in the last two years. As a results, there is a surplus of 3.11 million bags in coffee year 2018/19 following a surplus of 3.84 million bags in coffee year 2017/18.
Imports by ICO importing Members and the United States, which on average account for around 75 per cent of global imports, increased by 4.9 per cent to 66.56 million bags in the first half of coffee year 2018/19, the report says. Imports by the EU in October 2018 to March 2019 rose by 3.5 per cent to 42.71 million bags, and those of the United States increased by 8.1 per cent to 14.98 million bags.
Imports by Japan grew by 13.5 per cent to 3.92 million bags, and the Russian Federation by 4.9 per cent to 2.77 million bags. In contrast, Switzerland’s imports declined by 7.4 per cent to 1.53 million bags in the first six months of coffee year 2018/19. Imports by Norway and Tunisia increased by 1.3 per cent to 364,958 bags and 12.9 per cent to 282,259 bags, respectively.