Coffee prices end 2021 on decade-long high
In December 2021, coffee prices reached a new multi-year high as the monthly average of the International Coffee Organization (ICO) composite indicator price broke through the 200 US cents per pound mark, averaging 203.06 US cents per pound.
This is an increase of 4 per cent compared to 195.17 US cents per pound in November 2021. The price levels during coffee year 2021/22 so far mark a return to the higher levels experienced in 2011.
Compared to when the ICO Composite Indicator was at 115.73 US cents/lb in January 2021, the ICO says an increase of 75.5 per cent has been recorded to December 2021.
The ICO says the steady and consistent upward trend observed since the start of coffee year 2020/21 shows how after ten consecutive years of low-price levels a remarkable recovery of coffee prices has occurred.
As coffee prices continued to increase, the ICO says intra-day volatility in December 2021 of the ICO composite indicator price increased by 0.6 percentage points to 10.1 per cent in December 2021.
Exports of all forms of coffee in November 2021 totalled 9.25 million 60-kilogram bags, down 12.4 per cent in comparison to 10.56 million bags in November 2020.
In the first two month of coffee year 2021/22, exports of South America decreased significantly by 24.4 per cent to 9.67 million 60-kg bags as compared to 12.79 million bags in October-November 2020.
Shipments from Asia and Oceania over the first two month of coffee year 2021/22 was 6.21 million bags versus 5.08 million bags in October-November 2020.
Exports of all forms of coffee in November 2021 totalled 9.35 million 60-kilogram bags, down 12.4 per cent in comparison to 10.56 million bags in November 2020.
Exports by Africa decreased by 1.8 per cent to 2.05 million bags in October- November 2021 as compared to 2.09 million bags in the same period in 2020/21.
In terms of exports by groups of coffee, Arabica suffered from a 20.8 per cent fall in November 2021, dropping down to 5.72 million bags from 7.22 million bags in November 2020 whereas Robusta exports was 3.53 million bags.
Estimates of total production for coffee year 2020/21 has been revised up marginally to 169.66 million 60-kilogram bags, representing a 0.4 per cent increase as compared to 169.00 million bags during the previous coffee year.
Source: GCR Mag