World coffee prices hit the highest in the past years

Coffee prices in the world market continued to increase in September and reached the highest in the past years due to supply concerns.

World coffee prices hit the highest in the past years. Photo: TL.

According to the Center for Industry and Trade Information - Ministry of Industry and Trade, the International Coffee Organization's (ICO) report indicates that world coffee prices continued to increase in September 2021. The reason is that investors' concern about coffee supplies affecting by the weather in Brazil and the trade disruption in Asia causing by the Covid-19.

In September, the world coffee prices index tracked by the ICO rose to its highest level since February 2012 at Cent 170 per pound (equivalent to 0.45 kilogram), up 6.2% compared to last month and increased by 60.6% compared to October 2020 – the first month of the 2020-2021 coffee crop year.

In general, most types' coffee prices in September increased compared to the previous month and reached the highest level in many years.

In particular, Robusta coffee prices reached Cent 104.6 per pound, up 9.9% compared to August and surpassing the Cent 100 per pound threshold for the first time since August 2017. With this increase, the average Robusta coffee prices are now 53% higher than at the beginning of the 2020-2021 coffee crop year.

Likewise, Colombian Arabica coffee prices increased by 6.6% compared to last month and by 55.8% compared to the beginning of the 2020-2021 crop year, reaching Cent 240.4 per pound. This price is the highest average monthly price since February 2012.

In September, prices of other arabica coffees and Brazilian natural coffees also increased by 4.3% and 5% over the previous month, reaching Cent 225.5 per pound and Cent 183.7 per pound, respectively.

Because the increase of Robusta coffee prices is higher than that of Arabica coffee prices, their prices gap has narrowed.

In ICE Futures Europe (London) and ICE Futures US (New York), the gap between Robusta and Arabica coffee prices fell 0.8% in September to Cent 96.4 per pound compared with Cent 97.2 per pound in August.

According to the ICO, there was a slowdown in the gap between Robusta and Arabica coffee prices in September. In addition, the fluctuation in the coffee price index daily fell 8.6% to 8.2% in September 2021.