Daily Management Review

Coffee prices in November rise record high in anticipation of shortage


Prices for coffee in November jumped to a maximum in the last 12 months, according to a report by the International Coffee Organization (ICO).

Umer Shabib
Umer Shabib
The organization forecasts that the coffee shortage in the 2019/2020 agricultural year, which began in October, will be 502 thousand bags (bag weight is 60 kg). Beans production is expected to decrease by 0.9% and amount to 167.399 million bags, while consumption will grow by 1.5% and reach 167.901 million bags.

In the past agricultural year, the world recorded a surplus of coffee in the amount of 3.657 million bags after a drop in production in the previous three years.

Throughout November, the ICO cumulative indicator of the cost of coffee (includes different varieties from various producing countries) remained stable above $ 1 per pound. The average daily price over the past month increased by 10.1% to $ 1.07 per pound.

Global coffee exports in October 2019 fell by 13.4% compared to the same month last year and amounted to 8.91 million bags, which is the minimum volume since September 2017. This was facilitated by a number of factors, including poor weather conditions and low prices on world markets that persisted for a long time.

In late November, it was reported that coffee prices jumped more than a quarter in a few weeks on signs of declining production in Latin America.

source: ico.org