The monthly average of the International Coffee Organization (ICO) composite indicator rose 7.1 per cent to 99.97 US cents per pound in June 2019. This marks the first increase in the monthly average since January 2019.
The daily composite indicator ranged between 95.17 US cents per pound on 18 June and 105.25 US cents per pound on 28 June. The daily price rose above US$1 for the first time since 18 February 2019 on 30 May and remained above that level for nine days.
Average prices for all group indicators rose in June. Brazilian Naturals experienced the largest increase, averaging 100.69 US cents per pound, 9.5 per cent higher than in May 2019.
Robusta prices grew by 4.1 per cent to 74.02 US cents per pound. Colombian Milds increased by 7.3 per cent to 133.49 US cents per pound while Other Milds rose by 7.6 per cent to 129.73 US cents per pound.
In May 2019, world coffee exports rose by 19.4 per cent to 11.6 million 60-kilogram bags compared to May 2018, while exports in the first eight months of coffee year 2018/19 rose by 7.5 per cent to 86.57 million bags.
The ICO says demand for coffee appears to be strong, as imports by its importing members and the United States, which account for around 75 per cent of global imports, increased by 4.9 per cent to 66.56 million bags in the first six months of coffee year 2018/19.
Global coffee consumption is estimated to grow by 2 per cent to 164.64 million bags in coffee year 2018/19. Despite the ongoing demand growth, a global production surplus of 3.11 million bags is expected in coffee year 2018/19.