Coffee market recovers slightly from December slump
09.02.2018 09:30 "Agro Perspectiva" (Kyiv) —
After reaching its lowest level in 22 months in December 2017, the monthly average of the ICO composite indicator price increased by 1.4% to 115.60 US cents/lb in January 2018. Prices for all group indicators saw gains in January. Colombian Milds, Other Milds, and Brazilian Naturals recorded increases of 1.5%, 1% and 1.8% respectively while Robusta rose by 1.2%. In December 2017, global shipments of coffee increased by 0.7% to 10.62 million bags compared to the same month one year ago. However, shipments for the first quarter of coffee year 2017/18 are down 6.7% from one year ago, reaching 28.36 million bags. Global output in crop year 2017/18, is estimated at 158.93 million bags, 0.8% higher than last year. Production is estimated to grow by 4.7% to 17.93 million bags in Africa, 5.9% to 47.64 million bags in Asia & Oceania and 7.1% to 21.92 million bags in Mexico & Central America. These increases would offset declines in South America by 4.9% to 71.44 million bags. After falling to its lowest level in 22 months in December 2017, the monthly average of the ICO composite indicator price rose by 1.4% in January 2018 to 115.60 US cents/lb. The composite started the month at a high of 118.83 US cents/lb then fell to 113.03 US cents/lb on 16 January before rising slightly at the end of the month. Prices for all group indicators rose in January. Colombian Milds, Other Milds, and Brazilian Naturals recorded increases of 1.5%, 1% and 1.8% respectively, despite finishing the month lower than they started. Robustas also increased over the course of the month, with the group indicator briefly touching above 90 US cents/lb for the first time since November 2017, before settling on a monthly average of 88.65 cents, 1.2% higher than its level in December 2017. The average arbitrage in January, as measured on the New York and London futures markets, increased by 3.8% to 48.75 US cents/lb. Additionally, intra-day volatility of the ICO composite indicator price increased by 0.6 percentage points to 5.7%, after five months of decrease. http://www.ico.org
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