Coffee prices remained firm during the month of June, with a steep hike during the second half of the month. The ICO composite indicator price registered daily increases from 18 June till the end of the month, rising from 129,02 US cents per lb to 141,39 US cents per lb during this period. The increase was more marked in the case of Arabica prices, with the monthly average of the 2nd and 3rd positions on the New York futures market up from 137.03 US cents per lb in May to 143.59 US cents per lb in June. In the case of Robustas, following an upward correction in May, prices rose slightly in June, with the monthly average of the 2nd and 3rd positions on the London futures market up from 100.89 US cents per lb in May to 102.98 US cents per lb in June. In addition, there has been an increase in price volatility, particularly in the case of Arabicas.
Exports during May totalled 8.1 million bags, representing a fall of 8.9% compared to April. Exports during the first eight months of coffee year 2007/08 (October 2007 – May 2008) fell by 4.6% compared to the figure for the same period in coffee year 2006/07, down from 66.2 million bags to 63.1 million. During the first eight months of coffee year 2007/08, exports of Colombian Milds increased by 10% while exports of Brazilian Naturals and Robustas were down by 10% and 8%, respectively.
Lastly, I have received official information from Brazil indicating that production for crop year 2007/08, initially estimated at 33.7 million bags, has been revised upward to a level of 36 million bags. This means that total world production for 2007/08 is now revised to 118 million bags compared to 125.5 million bags in 2006/07.