Dubai,6 March 6, 2024(QW):- In its latest Coffee Market Report for February 2024, the International Coffee Organization (ICO) shines a spotlight on the remarkable transformations shaping the global coffee trade. Robusta prices have surged to their loftiest peaks since November 1994, signaling a pivotal moment in the industry. Here’s a closer look at the key highlights:
Price Trends:
- The ICO Composite Indicator Price (I-CIP) averaged 182.04 US cents/lb in February, reflecting a 3.2% surge from January 2023.
- Robustas stole the spotlight with a remarkable 3.2% growth, hitting 153.23 US cents/lb – a pinnacle not witnessed in almost three decades.
- The Colombian Milds and Other Milds displayed commendable gains of 1.9% and 2.7%, respectively, during February 2024.
Market Dynamics:
- Witnessing a significant shift, the Colombian Milds–Other Milds differential retracted from 2.32 to 0.75 US cents/lb.
- Arbitrage between the London and New York Futures markets narrowed by 9.1% to 42.94 US cents/lb in February 2024.
- Intra-day volatility of the I-CIP saw a notable 3.3 percentage points decline to 6.8% between January 2023 and February 2024.
Global Exports:
- Global green bean exports experienced a robust 35.8% surge in January 2024, reaching an impressive 11.55 million bags.
- Robustas’ green bean exports recorded an exceptional 50.3% increase, totaling 5.13 million bags – an all-time high for January.
- South America’s overall coffee exports spiked by an impressive 25.4% to 5.41 million bags in January 2024.
Production and Consumption:
- World coffee production witnessed a marginal uptick of 0.1% to 168.2 million bags in coffee year 2022/23.
- Anticipated production for coffee year 2023/24 is poised for a significant 5.8% rise, reaching 178.0 million bags.
- Despite a 2.0% consumption decrease in coffee year 2022/23, a resilient rebound is forecasted for 2023/24, with consumption set to rise by 2.2% to 177.0 million bags.
Surplus Projection:
- The world coffee market is expected to boast a surplus of 1.0 million bags in coffee year 2023/24.
These market dynamics spotlight the resilience and adaptability of the global coffee industry as it successfully navigates the challenges posed by the ongoing COVID-19 pandemic and evolving economic conditions. The surge in robusta prices and heightened global exports exemplify the intricate interplay of factors shaping the contemporary coffee market landscape.