The International Coffee Organization (ICO) composite indicator fell by 5.2 per cent to an average of 99.05 US cents per pound in June 2020, the third consecutive month of decrease.
This is the first time since October 2019 that the ICO composite indicator has fallen below 100 US cents per pound. The daily price of the ICO composite indicator spent more than half of the month below that benchmark, ranging between a low of 96.79 US cents per pound on 25 June and 101.27 US cents per pound on 8 June.
Despite strong exports in the first half of the coffee year, the ICO says there is an ongoing bearish outlook for demand, as global economic growth was further revised downwards in June by the International Monetary Fund, and expectations for a large harvest in Brazil put downward pressure on prices in June.
Prices for all Arabica groups trended downward in June 2020, but the Robusta group indicator rose by 0.1 per cent to 64.62 US cents per pound.
The volatility of the ICO composite indicator decreased by 1.6 percentage points to 6.1 per cent over the past month.
World exports reached 10.49 million bags, 14.6 per cent lower than in May 2019, but this is still the third largest volume for May on record. Global shipments in the first eight months of coffee year 2019/20 have fallen by 4.7 per cent to 87.96 million bags.
According to recently released data for March 2020, imports by ICO importing members and the United States increased by 5.1 per cent to 11.76 million bags, of which 8.25 million bags originated from exporting countries.
In the first half of coffee year 2019/20, imports by ICO importing Members and the United States reached 64.22 million bags, 3.7 per cent lower than in October 2018 to March 2019.