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ICO Attributes Low Coffee Prices To Supply Surplus

LONDON -- According to the International Coffee Organization's (ICO) August 2019 market report, the monthly average of the ICO composite indicator fell 6.7% since July to 96.07 U.S. cents per pound. 13.6% decline from 111.21 U.S. dollars per pound since the start of the coffee year in October 2018. In August, the daily composite indicator ranged between a low of 94.29 U.S. cents per pound on Aug. 19 and a high of 97.43 U.S. cents per pound on Aug. 8. Global coffee demand is estimated to grow by 2.1% to ...

September 12, 2019 by Emily Jed

LONDON -- According to the International Coffee Organization's (ICO) August 2019 market report, the monthly average of the ICO composite indicator fell 6.7% since July to 96.07 U.S. cents per pound. 13.6% decline from 111.21 U.S. dollars per pound since the start of the coffee year in October 2018.

In August, the daily composite indicator ranged between a low of 94.29 U.S. cents per pound on Aug. 19 and a high of 97.43 U.S. cents per pound on Aug. 8.

Global coffee demand is estimated to grow by 2.1% to 164.77 million bags, with growth in Asia, Oceania and Africa outpacing other regions. However, 2018/19 is estimated to end with a surplus of 4.96 million bags, making it the second consecutive year of surplus.

The ICO says the cumulative oversupply over the last two seasons is estimated at seven million bags, attributing this to current low coffee price level.