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.