November 2019 marked the first time in the last 12 months when the International Coffee Organization (ICO) Composite Indicator consistently stayed over 100 US cents per pound.The monthly average of the indicator rose 10.1 per cent to 107.23 US cents per pound amid expectations of a global deficit in coffee year 2019/20, estimated at 502,000 bags.
The daily price of the ICO composite rose from 102.74 US cents per pound at the beginning of November to a high of 111.86 US cents per pound on 25 November, before closing the month at 111.77 US cents per pound.
Prices for all group indicators rose in November 2019. Brazilian Naturals saw the largest increase, of 12.1 per cent to 109.94 US cents per pound. The ICO says this in part reflects the biennial decline in the production of Brazilian Arabica as well as the weakness of the Brazilian currency.
Other Milds rose 11 per cent to 140.98 US cents per pound, while Colombian Milds rose 10.6 per cent to 146.12 US cents per pound. The differential between Colombian Milds and Other Milds continued its ascent in November 2019, rising 0.8 per cent to 5.14 US cents per pound. Prices for Robustas increased 6.8 per cent month-on-month to 73.28 US cents per pound.