Pricing Volatility Reflects Positive Outlook
The International Coffee Organization (ICO) noted a sharp drop in green coffee prices in April, due in large part to investors selling long positions acquired months ago during a period of unusually high volatility.
Exports of arabica during the first half of the 2016/17 coffee harvest are estimated to be up by 4.8% to 60 million bags. Prices were down 6.9% for the month of April hitting a low of $1.22 per pound.Very high export volumes have ensured that consumer stocks are well supplied. At the end of December 2016, stocks of green coffee in importing countries reached 23.5 million bags, compared to 23 million in December 2015.