Coffee prices readjust and certified stocks grow: ICO report
The International Coffee Organization’s (ICO) March 2022 market report shows the composite indicator of coffee prices averaged 194.78 US cents per pound in March.
This is a fall of 7.6 per cent in comparison with the previous month, breaking a streak of 17 consecutive months of increases.
The ICO says every group of coffee recorded a reduction over March, with Brazilian Naturals presenting the highest reduction of 9.4 per cent.
The report shows certified stocks at the close of March 2022 reversed the previous downward trend, as the New York Board of Trade gained 13.9 per cent from February 2022, rising from 1.08 million 60-kilogram bags of coffee to 1.23 million bags.
Moreover, the London International Financial Futures and Options Exchange certified stocks grew by 90,000 bags, or 5.8 per cent during that same period, from 1.54 million bags to 1.63 million bags.
Global exports of green beans in February 2022 totalled 9.88 million bags, compared with 10.24 million bags in the same month of the previous year.
From October 2021 to February 2022, South America’s exports decreased by 14.5 per cent to 24.99 million bags.
Asia and Oceania’s coffee exports increased by 25.0 per cent to 3.96 million bags in February 2022, and by 21.6 per cent to 18.67 million bags in the first five months of coffee year 2021/22.
Exports from Africa decreased by 11.9 per cent to 975,000 bags in February 2022 from 1.11 million bags in February 2021.
In February 2022, exports from Mexico and Central America dropped by 4.1 per cent to 1.47 million as compared with 1.53 million bags in February 2021.
Total exports of soluble coffee grew by 64.9 per cent in February 2022 to 1.46 million bags from 888,000 bags in February 2021.
The latest provisional outlook for total production in coffee year 2021/22 remains unchanged at 167.2 million bags, a 2.1 per cent decrease as compared to 170.83 million bags of the previous coffee year.
World coffee consumption is projected to grow by 3.3 per cent, to 170.3 million 60-kilogram bags in 2021/22 as compared to 164.9 million for coffee year 2020/21.
In 2021/22, consumption is expected to exceed production by 3.1 million bags. Supply and demand trends may be affected by variations due to the downturn in the world economy, increased cost of inputs and production as well import and consumption due to the conflict in Ukraine.
For more information, click here.
Source: GCR Mag