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Informist, Friday, Feb. 7, 2025

 

MUMBAI – Global coffee prices rose 3.5% on month to 310.12 cents a pound in January, as per the International Coffee Organization's composite indicator of prices. The composite indicator reached new highs last month and achieved the highest monthly average since April 1977, mainly on rising domestic prices in Brazil and uncertainties in the global economy.

 

"The actions of the new US administration on international trade could affect the global coffee industry as some of the major (countries of) origin, including Brazil, India, and Indonesia, are part of the review currently being undertaken," the organisation said in its monthly report. During the month, the composite indicator fluctuated between 294.51 cents a pound and 342.53 cents a pound, with a median value of 303.51 cents a pound, it said.

 

The price of Colombian Milds coffee rose 3.2% on month to 351.93 cents a pound in January, and that of Other Milds also rose 3.2% on month to 354.47 cents a pound. Brazilian Naturals appreciated 3.7% on month to 339.18 cents a pound, while Robustas grew 3.6% to 245.29 cents a pound. The New York Intercontinental Exchange market was the main driver of growth, with coffee contracts increasing by 3.8% in January to reach 328.94 cents a pound. On the London Intercontinental Exchange market, the contracts rose 3.6%, averaging 234.33 cents a pound, as per the report.

 

The arbitrage between the London and New York futures markets expanded 4.3% to 94.60 cents a pound in January, marking its highest point since October 2022, according to the report.

 

Global green beans exports in December fell 10.5% on year to 9.73 million bags (1 bag = 60 kg), the second negative growth in the last 14 months. Green bean exports of Robustas decreased 19% on year to 3.71 million bags in December. Green bean exports of Brazilian Naturals were at 3.34 million bags, down 11.3% on year, it said.

 

Exports of Colombian Milds rose 32% on year to 1.39 million bags in December, marking the 15th consecutive month of growth for this coffee group, the report said. Shipments of Other Milds fell 12.3% on year in December to 1.28 million bags. Total exports of soluble coffee decreased 28.2% on year to 940,000 bags in December. Brazil was the largest exporter of soluble coffee in December, shipping 420,000 bags, it said. Data for exports come with a month's lag.

 

Exports from South America fell 2.1% to 5.6 million bags in December, the first negative growth for the region in 16 months. Exports from Africa rose 8% on year to 1.21 million bags. Exports from Mexico and Central America rose 0.9% on year to 610,000 bags in December, while exports from Asia and Oceania fell 31.2% to 3.31 million bags, the organisation said in its report.

 

Global coffee production in 2023-24 (Oct-Sep) is expected to have increased to 178 million bags, up from 168.2 million bags in the previous year, the report said. Consumption of coffee in 2023-24 is expected to have risen 2.2% on year to 177 million bags, which means the global coffee market is likely to have been left with a surplus of 1 million bags, as per the report.  End

 

US$1 = INR 87.42

 

Reported by Ashutosh Pati

Edited by Rajeev Pai

 

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