World coffee production is estimated to be higher in this coffee year 2017/18, ending the coffee market in surplus. Increase in supply has increased coffee commodity futures trading and global exports. Also, the surplus has contributed to decrease in coffee prices this season as world coffee consumption is estimated to be higher.
Global coffee production in coffee year 2017/18 which starts from October 01, 2017 to September 30, 2018, is assessed to be 5.7 percent higher at 164.81 million sacks as yield of Arabica expanded by 2.2 percent to 101.82, and Robusta improved by 11.7 percent to 62.99 million sacks, according to the September 2018 coffee report prepared by the ICO (International Coffee Organization).
The bigger supply in this coffee year has contributed to increase in shipments, coffee commodity futures trading, shipments and global exports in August 2018. In fact, the global exports expanded 6.3 percent to 11.1 million sacks in this year when compared to that in August 2017.
The world consumption or utilization of coffee is evaluated to be 1.8 percent higher at 162.23 million packs in this coffee year, however coffee production surpasses this by 2.58 million sacks. This surplus has added to the low costs of coffee this season, according to a report on the official website of ICO (International Coffee Organization).
The ICO composite marker tumbled to 98.17 US cents/lb in September 2018, which is 4.1 percent lower than in August 2018. This is the lowest monthly average since October 2006 when it achieved 95.53 US cents/lb.
The prices of for all group indicators dropped for the fourth continuous month in September 2018. The biggest drop happened in the normal cost for Robusta, which dropped by 5 percent to 76.70 US cents/lb followed by a decrease in the price of Brazilian Naturals which fell by 4.4 percent to 99.87 US cents/lb, as reported on the ICO website as well as on Commodity Online.
Thus, the world coffee market has successfully ended 2017-18 in excess supply and price drop, leading to satisfactory profits in coffee commodity futures trading and global exports.
The post Coffee Commodity Futures Trading Increases As World Coffee Market Ends In Surplus appeared first on OWLT Market.
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