Stock exchange news. The descending coffee price correction, which started in June, lasted during July 2011. Thus, the average monthly rate of ICO composite prices has dropped to 210.36 US cents / pound in comparison with 215.58 in June, which speaks about the price drop by 2.4%. Despite this drop, the price level still remains considerably higher than in 2010.
Descending correction was much more vividly noticed in case of “Robustas”, which position at London futures market has lowered by 6.5% in relation to its June level. The volatility of “Arabica” coffee price slightly dropped in July.
World production in 2010/11 agricultural year, as far as it is expected, will amount to about 133,300,000 bushels, which still remains at the highest level on record. Preliminary assessments for 2011/12 agricultural year
show that the average production volume amounted to about 130 mln. bushels. It is worth mentioning that the crop of 2011/12 agricultural year
is characterized by production of “Arabica” in Brazil.
Export of all exporting countries during June 2011 amounted to 8,800,000 bushels in comparison with 8,000,000 bushels in June 2010. During the first nine months of 2010/11 year (since October 2010 to June 2011) the export of coffee amounted to 80.7 mln. bushels. This, in comparison with 69.7 mln. bushels during the equal period of 2009/10 year
, demonstrates the increase by 15.9%. Such level of export during the first nine months of 2010/11 year is the highest on record.
According to the traders of Masterforex-V Academy Department of Derivatives Trading, despite this year heavy crop of coffee, coffee market, after a minor correction, is ready to start its ascending movement.
