A monthly report on the coffee market for May 2012 has been released by the International Coffee Organization. It states:
Arabica prices fell in May compared to April levels, whereas Robusta prices saw a significant increase, which resulted from a reduction in the difference between the two types of coffee. Consequently, the monthly average of the ICO composite indicator fell by 1.7%, from 160.46 U.S. cents per pound in April to 157.68 in May. This is the lowest level recorded since August 2010. The price volatility increased only for Robusta.
With regard to market fundamentals, it is estimated that total production of all exporting countries in crop year 2011/12 was around 131.9 million bags, compared to 134.2 million in 2010/11. The second estimate of Brazil's production in crop year 2012/13 predicts a harvest of at least 50.4 million bags, representing an increase of 16% compared to the previous crop year. Production increases are also expected in other exporting countries, fueled by coffee prices in recent years. It will take much more accurate data in order to establish initial estimates of total production for the crop year 2012/13.
However, the ongoing dynamism of world consumption should make it possible to maintain the balance between supply and demand. Included in this report is a brief analysis of consumption over the past 22 years.
Source: International Coffee Organization
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In June 2011 another drop in coffee prices was observed, especially in the Arabic variety, following on from a decline in May.
The reduction in the price of Robusta was somewhat less marked than in Arabica, which has lessened the difference between these two types of coffee.
The monthly average composite indicator price in April was $160.46 cents / pound compared to $167.77 in March. The prices were less volatile in April than in March.
Despite the dip, Robusta coffee prices remain firm and the average sales price in the first 4 months of 2012 is still above that recorded in the fourth quarter of 2011.
The price indicator of the ICO composite fell by 1.4% in April, despite a brief recovery having been observed at mid-month, and recorded the lowest monthly average in three years.
From the monthly report on the coffee market up to April 2013 by the International Coffee Organization:
The total value of sales decreased slightly compared to the previous crop due to low prices paid on the international market.
During the first 11 months of the 2012-13 crop 2.4 million quintals of coffee have been exported, compared to 1.9 million quintals in the previous harvest.