LONDON – Coffee prices soared higher at the beginning of the month, with the ICO composite price gaining 15 cents in just 6 days, but rains in Brazil drove prices lower, finishing the month below where they started.
Nevertheless, the monthly average of 172.88 was the highest since February 2012, 6.9% higher than September.
In terms of the group indicators, the three Arabica indicators all reached their highest monthly average in over two and a half years (February 2012 for Colombian Milds and Brazilian Naturals, January 2012 for Other Milds), recording increases of 7.6%, 7%, and 8.2% respectively.
Robustas also increased by 4.2% to reach their highest level in six months.
As a result, the arbitrage between Arabica (on the New York market) and Robustas (London) also increased by 13.6% to 114.61 US cents/lb, again, the largest gap since February 2012. The price differentials between the three Arabica groups and Robusta all increased significantly.
Total exports in September 2014 reached 8.1 million bags, compared to 8.5 million in September last year.
This brings to a close coffee year 2013/14, with total exports amounting to 111.3 million bags, 1.5% less than the 113 million bags shipped in coffee year 2012/13. N
evertheless, this is still the second highest level on record, ensuring that the coffee market has been well supplied over the last two years.
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