Coffee prices rallied slightly in July, supported by the possibility of frost in Brazil’s coffee‐growing regions, before falling back down by the end of the month.
The average of the ICO composite indicator increased by 1.2% compared to the previous month, but is still at its second‐lowest level since September 2009. The arbitrage between Arabicas and Robustas has also narrowed further, with the price differentials between the three Arabica group indicators and the Robustas group indicator all at their lowest level since December 2008.
Furthermore, certified stocks on the London futures market have fallen to their lowest level since October 2007, indicating a sustained appetite for Robusta coffee.
Finally, total exports by all exporting countries for the first nine months of coffee year 2012/13 amounted to 84.3 million bags, a 3.4% increase on the same period last year.
