Last week the International Coffee Organization (ICO), responsible for setting the global price of coffee, published their monthly report for February. The news? Coffee prices, which rose in January month before starting to decline, have continued to decrease. Coffee producers will be relieved that the fall is only “slight” this month. At the same time, the price paid for exports increased over 2015/6.
Why Have Coffee Prices Continued to Decline?
The start of January was marked by concern over supply, due to bad harvests in Brazil and droughts in Vietnam and Indonesia. This led to higher prices – although prices had been falling for a while before that – especially for Robusta and low-quality Arabicas.
Now, however, as worries of a shortage start to disappear, the price is in decline. Robusta has seen the biggest decrease in price.
Global Export Prices Increase
The ICO also released the data for 2015/6 exports. This shows an increase in prices since 2014/5. In fact, it’s the highest prices have been since 2012/3. At the same time, the volume of exports has fallen.
Perfect Daily Grind
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