In October 2021, the International Coffee Organization (ICO) found that coffee prices had reached new multi-year highs, as the monthly average of the ICO composite indicator price increased by 6.8 per cent to 181.57 US cents per pound, as compared to 170.02 US cents per pound in September 2021.
The levels reached in October 2021 mark a 71.5 per cent increase as compared to the coffee price of 105.85 US cents per pound that was recorded in October 2020. The average price recorded in October 2021 is the highest recorded since 182.29 US cents per pound was recorded in February 2012.
According to the ICO, these price levels for the 2020/21 coffee year mark a significant recovery from the low levels experienced over the past three coffee years.
The highest increase occurred in the Brazilian Naturals Group indicator price, which reached 199.98 US cents per pound, an increase of 8.9 per cent as compared to 183.72 US cents per pound that was recorded in September 2021. It marks a 99.2 per cent increase from October 2020 prices and is the highest level reached since February 2012.
The price for the Colombian Milds increased by 7.7 per cent to 258.87 US cents per pound in October 2021 as compared to 240.38 US cents per pound in September 2021. This is the highest level recorded since September 2011.
Prices for the Other Milds increased by 6.9 per cent to 241.06 US cents per pound in October 2021 as compared to 225.54 US cents per pound in September 2021. A higher level has not been since November 2011.
Prices for Robusta increased by 0.6 per cent between September and October 2021, to 105.24 US cents per pound. It is the highest level reached since April 2014.
Total shipments of all forms of coffee for the 2020/21 coffee year, which is between October 2020 and September 2021, amounted to 129.03 million bags, an increase of 1.3 per cent compared with 127.36 million bags during the 2019/20 coffee year.
The ICO says that world coffee consumption is resuming its steady growth of the last 10 years, as found before the outbreak of the COVID-19 pandemic. It is projected to rise by 1.9 per cent to 167.15 million bags in 2020/21 as compared to the 164.02 million bags for the coffee year 2019/20.
For market fundamentals, exports of all forms of coffee by all exporting countries reached 10.07 million 60-kilogram bags in September 2021. This was 4.9 per cent lower than September 2020.
The projection for total production in the 2020/21 coffee year is 169.64 million bags, representing a marginal increase of 0.4 per cent from the 168.98 million bags harvested in the 2019/20 coffee year.
The projected total production of the coffee year 2020/21 is 8.6 per cent higher than the average of the last 10 coffee years.
The ICO still expresses concern over coffee supply from important origin countries as climate shocks, COVID-related disruptions, and more continue to affect trade flows in many countries.
To read the report, click here.