Robusta coffee price hits 45-year high in April 2024

Robusta coffee price hits 45-year high in April 2024
Robusta coffee price hits 45-year high in April 2024

(Ecofin Agency) – Since January 2024, the increasing rise in cocoa prices has focused attention on the agricultural raw materials market. Over the period considered, robusta coffee prices also showed sustained growth.

In its latest monthly report, the International Coffee Organization (ICO) said the composite indicative price (I-ICP) of robusta rose 16.8% to an average of $1.93 per pound in April. “This is its highest level in 45 years, since July 1979, when it averaged $1.95,” underlines the report.

Since January 2024, coffee prices on the London Stock Exchange have been on an upward slope, climbing 49% to reach a peak of $4,546 per tonne on April 25 before gradually falling to close at $3,380 on May 7. .

As was the case for the cocoaone of the main reasons for this recent bearish trend is according to the ICO, the liquidation by several speculators of their long positions on the commodity in order to recover their profits.

It should also be remembered that the tensions on the coffee market have their origins in the poor harvest forecasts expected in Vietnam and Brazil, respectively 1ᵉʳ and 2th global supplier of robusta, particularly due to the drought in these two countries.

In the Asian country, the latest estimates made by the Department of Agriculture announce a 20% fall in national coffee production to 1.472 million tonnes in 2023/24, the lowest level in 4 years.

As a reminder, robusta accounts for around 42% of the world’s coffee supply, which is around 10.3 million tonnes per year, according to ICO data.

Stéphanas Assocle

Also read:

02/05/2024 – Cocoa prices record a sharp drop amid maneuvers by speculators on the markets

04/04/2024 – African coffee production fell by 7% to 1 million tonnes in 2022/2023

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