Global coffee price touched multi-years high in Oct despite improved conditions in Brazil, says ICO

World coffee prices reached new multi-year highs in October, as the monthly average of the ICO composite indicator price was 181.57 US cents/lb, an increase of 6.8% as compared to 170.02 US cents/lb in the previous month, the International Coffee Organization said in its latest monthly report.

These price levels during coffee year 2020/21 mark a significant recovery from the low levels experienced over the three preceding coffee years, the ICO said, adding that in terms of market fundamentals, exports of all forms of coffee by all exporting countries to all destinations totalled 10.07 million 60-kg bags in September 2021, 4.9% lower than in September 2020.

Total shipments of all forms of coffee over coffee year 2020/21 (October 2020 – September 2021) amounted to 129.03 million bags, an increase of 1.3% compared with 127.36 million bags during coffee year 2019/20.

Global coffee consumption for coffee year 2020/21 is estimated at 167.15 million bags, an increase of 1.9% over 164.02 million bags recorded in coffee year 2019/20. The projection for total production in coffee year 2020/21 is 169.64 million bags, representing a marginal increase of 0.4% on the 168.98 million bags harvested in coffee year 2019/20.

The projected total production of coffee year2020/21 is 8.6% higher than the average of the last 10 coffee years. However, concerns over the supply from important origins still characterise market conditions, as climate-related shocks and covid-related disruptions continue to affect trade flows in many countries, the ICO said.

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