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Showing posts from July 12, 2012

ICO: Production prospects for crop year 2012/13 are mixed

Higher costs of production and changes in weather patterns may adversely affect the anticipated higher production in many coffee origins. Costs of production are still high, which leads many exporting countries with low productivity to curtail expenditures on the maintenance of their coffee farms. Indeed, only exporting countries with high productivity are more able to cope with rising costs of production and falling coffee prices. The following is an excerpt from the International Coffee Organization (ICO) June 2012 Monthly Market Report --- Source: ICO July 5, 2012 In June 2012 coffee prices, particularly those of Arabicas, continued the fall recorded in recent months. The drop in Robusta prices was less marked than in the case of Arabicas, leading to another narrowing of the differential between the two types of coffee. The monthly average of the ICO composite indicator price fell by 7.8% from 157.68 US cents/lb in May to 145.31 US cents in June, its lowest level s...