Strong brew: Coffee prices up 10.1%; upward trend likely to continue

ICO maintains its preliminary forecast of a small global deficit of about 502,000 bags in coffee year 2019-20

Prices of coffee globally continues to increase amid expectations of a global deficit in coffee year 2019-20. In India they are moving in tandem, however growers are saying while prices of Arabica matches only cost of production, prices of Robusta fetch 10-12 per cent more than production cost.

Prices are expected to increase since deficit in coffee year 2019-20 is estimated at 502,000 bags.

The month of November marked the first time in the last 12 months when the International Coffee Organization (ICO) Composite Indicator consistently stayed over $ 100 cents/lb (pound). The daily price of the ICO composite rose