The monthly average of the ICO composite indicator rose by 4.6% to
114.74 US cents/lb in December 2020
The daily composite indicator fell to a low of 110.35 US cents/lb on 9 December before climbing back up to 116.98 on 17 December. The daily price remained at a similar level for the remainder of the month until reaching a high of 119.21 US cents/lb on 31 December. Prices in December were supported by sustained demand as evidenced by a continued drawdown in green coffee stocks in large importing countries, such as the USA, as well as the depreciation of the US dollar. Additionally, while exports from Brazil have surged due to the sizeable 2020/21 crop, this was partially offset by a decline in shipments from other Arabica producers, reducing the downward pressure on prices.
Prices for all Arabica group indicators rose in December 2020. The average price for Colombian. Milds rose by 5.7% to 170.44 US cents/lb, which is the highest monthly average since November 2016 when it averaged 177.85 US cents/lb. After declining in October and November 2020, the average price for Other Milds rose by 4.7% to 157.81 US cents/lb. As a result, the differential between Colombia Milds and Other Milds rose by 20.5% to 12.63 US cents/lb, which is the largest difference since June 2012 when it reached 15.98 US cents/lb. The average price for Brazilian Naturals grew by 8% to 114.96 US cents/lb, while Robusta prices averaged 72.04 US cents/lb, 0.5% lower than in November 2020.