November coffee prices rise on concerns over 2021 production
In November, the ICO composite indicator rose by 3.6% to 109.70 US cents/lb as prices for all group indicators increased, except Other Milds, which fell by 0.9% to 150.73 US cents/lb. World coffee production in coffee year 2019/20 decreased by 1.6% to 168.55 million bags as a consequence a 5.1% decline in Arabica output to 95.73 million bags, while Robusta production rose by 3.2% to 72.82 million bags. South America’s production fell by 4.6% to 78.87 million bags, due largely to the decline in Brazil’s Arabica output in the off-year of the biennial crop cycle. Production from Asia & Oceania grew by 4.1% to 50.07 million bags, due largely to the recovery of output in Indonesia and Viet Nam. Production in Central America & Mexico declined by 4.5% to 20.76 million bags, while Africa’s output remained stable at 18.86 million bags. World coffee production exceeded global consumption by 961,000 bags as world coffee demand decreased by 0.9% to 167.59 million bags. After falling by 8.9% in October, the monthly average of the ICO composite indicator rose by 3.6% to 109.70 US cents/lb in November 2020. The daily composite indicator ranged between 103.77 US cents/lb and 108.72 US cents/lb in the first two weeks of the month. In the second half of the month, however, it reached a low of 110.22 US cents/lb on 24 November and a high of 116.17 US cents/lb on 27 November. A delayed start to Viet Nam’s harvest, concerns over the prolonged drought in Brazil, and the damage caused by hurricanes Iota and Eta in Central America boosted prices in November, though the bearish outlook for the global economy limited further recovery.