February 4-2021Coffee Geography Magazine
The ICO composite indicator continued to climb in January 2021, averaging 115.73 US cents/lb, 0.9% higher than last month. Prices for all Arabica indicators rose in January, while Robusta prices decreased by 1.8% to 70.71 US cents/lb. Exports in the first three months of coffee year 2020/21 were 31.59 million bags, 6.1% higher than in October to December 2019. In coffee year 2020/21, global production is estimated to rise by 1.9% to 171.9 million bags with Arabica production growing by 5.2% to 101.88 million bags. World coffee consumption is projected to increase by 1.3% to 166.63 million bags in 2020/21 as social distancing measures remain in place, limiting out-of-home consumption, and the global economy slowly recovers. While demand is expected to recover, the expected increase in global production could lead to a projected surplus of 5.27 million bags at the end of coffee year 2020/21. While current projections would negatively impact prices this year, the covid-19 pandemic remains an unprecedented and swiftly evolving situation.