International Coffee Organization’s October 2023 Coffee Market Report: Insights and Trends

The International Coffee Organization (ICO) has released its Coffee Market Report for October 2023, providing a comprehensive analysis of global coffee trends. Here are some key highlights from the report:

1. ICO Composite Indicator Price (I-CIP) Overview:

The I-CIP averaged 151.94 US cents/lb in October, showing a slight 0.8% decline from September.

The Colombian Milds-Other Milds differential grew by 38.5% to 2.02 US cents/lb.

Arbitrage between the London and New York Futures markets widened by 13.7% to 50.51 US cents/lb.

2. Green Coffee Price Fluctuations:

The I-CIP posted a median value of 151.58 US cents/lb, with fluctuations between 145.99 and 160.09 US cents/lb.

Among coffee types, Colombian Milds and Other Milds increased by 0.5% and 0.2%, respectively, while Robustas retracted by 4.1%.

3. Global Green Bean Exports:

Green bean exports for coffee year 2022/23 decreased by 5.5% to 110.81 million bags.

Notable changes include a 12.1% decrease in shipments of Other Milds and an 11.2% drop in exports of Colombian Milds.

4. Regional Export Trends:

South America’s exports of all forms of coffee decreased by 11.0%, totaling 50.59 million bags.

Africa experienced a 1.4% decrease in exports to 13.53 million bags in coffee year 2022/23.

5. World Coffee Production and Consumption:

World coffee production is expected to rebound by 1.7% to 171.3 million bags in 2022/23.

Consumption is projected to increase by 1.7% to 178.5 million bags, indicating a potential deficit of 7.3 million bags for the year.

6. Soluble Coffee and Roasted Beans Exports:

Total exports of soluble coffee decreased by 5.7% to 11.47 million bags in coffee year 2022/23.

Roasted coffee exports were down 16.0% to 0.71 million bags in the same period.

7. Price Differentials and Volatility:

Price differentials for various coffee types witnessed fluctuations, with the Colombian Milds-Other Milds differential growing by 38.5%.

Intra-day volatility of the I-CIP remained stable at 6.3% between September and October 2023.

The ICO report suggests that the global coffee market is expected to face another year of deficit under current circumstances. The insights provided in the report offer valuable information for stakeholders and industry players.

For more detailed information, the full Coffee Market Report can be accessed on the ICO website.