Coffee price increases due to crop emerge
Coffee prices in July increased significantly with the monthly average of the ICO composite indicator prices up 4% to 127.26 US cents/lb.
Initially, the daily price weakened slightly, reaching its low of 122.71 US cents/lb on 11 July but then increased steadily until the end of the month.
The indicator price climbed to 131.52 US cents/lb on 31 July, an increase of 6.66 US cents/lb from 3 July and the highest level since the end of April 2017.
The breakdown of the group indicators for July reveals that Arabica groups rose more strongly than Robustas when compared to June.
All three Arabica groups registered significant increases as the average prices for Colombian Milds, Other Milds and Brazilian Naturals were up 4.4%, 4.5% and 4.4%, respectively. The monthly average for the Robusta group rose by 2.9%.
As a result of the trends in Arabica and Robusta quotations, the arbitrage, as measured on the New York and London futures markets, increased by 13.1% to 39.68 US cents/lb. Meanwhile intra‐day volatility of the ICO composite indicator price increased by 0.5 percentage points to 7.5%.
Total exports in June amounted to 10.4 million bags, 5.7% higher than June 2016. During the first nine months of coffee year 2016/17 total exports were 4.9 million bags higher than last year when shipments amounted to 87.4 million bags.