The International Coffee Organization (ICO) composite indicator increased in December by 4.6 per cent to 114.74 US cents per pound, as prices for Arabica group indicators increased.
The daily composite indicator fell to a low of 110.35 US cents per pound on 9 December, before climbing back up to 116.98 on 17 December.
The ICO say prices in December were supported by sustained demand, as evidenced by a continued drawdown in green coffee stocks in large importing countries, such as the United States, as well as the depreciation of the US dollar.
Additionally, while exports from Brazil have surged due to the sizeable 2020/21 crop, the ICO says this was partially offset by a decline in shipments from other Arabica producers, reducing the downward pressure on prices.
The largest increase occurred for Brazilian Naturals, which grew by 8 per cent to 114.96 US cents per pound, which is the highest monthly average since December 2019 when they reached 126.36 US cents per pound.
Colombian Milds rose by 5.7 per cent to 170.44 US cents per pound and Other Milds by 4.7 per cent to 157.81 US cents per pound, which are both higher than their average in December 2019.
However, prices for Robusta fell by 0.5 per cent to 72.04 US cents per pound.
Global exports in November 2020 reached 10.15 million bags, which represents an increase of 5.7 per cent compared to November 2019. In the first two months of coffee year 2020/21 (October and November), total exports were 6.5 per cent higher at 20.2 million bags compared to the same period last year as shipments for all groups declined except Brazilian Naturals, which rose by 23.1 per cent to 8.31 million bags.
Likely due to the impact of the COVID-19 pandemic, imports by ICO importing Members and the United States decreased by 4.5 per cent to 129.98 million bags in coffee year 2019/20.
While both green and roasted imports declined in coffee year 2019/20, imports of soluble coffee increased by 1 per cent to 14.4 million bags.
In coffee year 2019/20, re-exports by ICO importing Members and the United States rose by 0.4 per cent to 46.93 million bags.