Coffee prices underwent further increases in September 2021 but volatility ...

7 October 2021

In September 2021, coffee prices reached new record highs as the monthly average of the ICO composite indicator price was 170.02 US cents/lb, an increase of 6.2% as compared to 160.14 US cents/lb in August 2021. These price levels during coffee year 2020/21 confirmed a net recovery from the low levels experienced over the last three coffee years. The coffee market continued to be driven by weather in Brazil and by covid-related disruptions affecting trade in Asia.

In terms of market fundamentals, exports of all forms of coffee by all exporting countries to all destinations totalled 10.1 million 60-kg bags in August 2021, the same level as in August 2020. Total exports of all forms of coffee over the first 11 months of coffee year 2020/21 (October 2020 – August 2021) amounted to 118.96 million bags, an increase of 1.9% compared with 116.77 million bags during the same period in coffee year 2019/20.

Cumulative exports from September 2020 to August 2021 are estimated at 129.55 million 60-kg bags, an increase of 2.1% compared with the 126.85 million bags recorded from September 2019 to August 2020. Global coffee consumption for coffee year 2020/21 is estimated at 167.26 million bags, an increase of 1.9% over 164.13 million bags recorded in coffee year 2019/20. The projection for total production in coffee year 2020/21 is 169.64 million bags, representing a marginal increase of 0.4% on the 169.0 million bags harvested in coffee year 2019/20. The projected total production of coffee year 2020/21 is 8.6% above the average of the last 10 coffee years. However, concerns over the supply from main origins still remain as climate-related shocks and covid-related disruptions continue to affect trade flows in many countries.

Find out more in the ICO's latest Coffee Market Report>>