You think? If you can judge the demand for coffee by the way I drink the brew, then this statement is definitely true. Seriously, though, it seems that the price of coffee is not about to go down anytime soon despite the forecasted increase in supply. This is due to the growing demand of coffee worldwide.
International Coffee Organization (ICO) Executive Director Nester Osorio in his latest coffee market report, said imports reached a record level in 2007.
Demand is thus the main factor influencing the market, at present. During the first six months of the coffee year 2007-08, exports from Brazil and Vietnam were considerably lower.
The average of the ICO composite indicator price for April fell to 126.55 cents per pound, compared with136.17 cents in March.
Despite this decrease, price levels are still firm and price volatility has become less intense. Average prices in the first four months of 2008 are higher than those recorded during previous months.
Exports during of March (8.7 million bags) were higher than those recorded in February (7.7 million bags). However, exports during the first six months of coffee year 2007-08 fell by 4.9 per cent compared to the same period in coffee year 2006-07.
New estimates of Brazilian production for 2008-09 have been just released. This establishes the size of the crop at 45.5 million bags, comprising 34.7 million bags of Arabicas and 10.8 million bags of Robustas.
That’s a whole lot of coffee!