Robustas reach 28-year high: ICO report

The International Coffee Organisation’s (ICO) June 2023 report shows its Composite Indicator Price (I-CIP) lost 2.4 per cent from May to June 2023, averaging 171.25 US cents per pound for the latter, whilst posting a median value of 172.92 US cents per pound.

Average prices for all group indicators decreased in June 2023, with the exception of Robustas which increased 7.8 per cent, averaging 132.13 per cent US cents per pound.

Intra-day volatility of the I-CIP followed a consistent downtrend, reaching 8.1 per cent, a 0.5 percentage point decrease between May and June 2023.

Global green bean exports in May 2023 totalled 9.56 million bags, as compared with 9.61 million bags in the same month of the previous year, a decrease of 0.6 per cent.

South America’s exports total coffee exports decreased by 11.5 per cent to 3.47 million bags in May, driven by the three main origins of the region, Brazil, Colombia and Peru, which saw their combined exports fall by 12.29 per cent.

Brazillan green bean exports fell in May 2023, decreasing by 14.8 per cent to 2.43 million bags.

The Colombian Milds-Other Milds differential contracted by 34.5 per cent to 4.46 US cents per pound. In June 2023, the Colombian Milds-Other Milds Arabica differential has been narrowing considerably. In the latter third of June, the differential averaged -2.57 US cents per pound.

Exports of all forms of coffee from Africa decreased by 7.2 per cent to 1.14 million bags in May 2023 from 1.23 million bags in May 2022.

However, exports of all forms of coffee from Mexico and Central America were up 12.4 per cent to 2.14 million bags in May 2023 compared to 1.91 million in May 2022.

Total coffee exports from Asia and Oceania increased by 13.1 per cent to 3.94 million bags in May 2023, and were up 3.2 per cent to 31.73 million bags in the first eight months of coffee year 2022/23

The New York and London certified stocks decreased in tandem by 8.5 per cent and 9.7 per cent, respectively, closing in at 0.60 million 60-kg bags, while certified stocks of Robusta coffee reached 1.25 million 60-kg bags.

Total exports of soluble coffee increased by 24.6 per cent in May 2023 to 1.07 million bags from 0.86 million bags in May 2022, while exports of roasted beans were down 4.8 per cent in May 2023 to 72,925 bags, as compared with 68,003 bags in May 2022.

World coffee production decreased by 1.4 per cent year on year to 168.5 million bags in coffee year 2021/22; however, it is expected to bounce back by 1.7 per cent to 171.3 million bags in 2022/23.

World coffee consumption increased by 4.2 per cent to 175.6 million bags in coffee during the 2021-22 financial year. The ICO report says this number is expected to increase further to 178.5 million bags throughout the 2022-23 financial year.

The report says the world coffee market is expected to undergo another year of deficit, with an estimated shortfall of 7.3 million bags in coffee year 2022/23.

The full ICO report for June 2023 can be found here.

The post Robustas reach 28-year high: ICO report appeared first on Global Coffee Report.

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