In November, coffee prices jumped to their highest level in 12 months, according to a report by the International Coffee Organization (ICO).

According to the ICO forecast, the coffee deficit in the 2019/2020 agricultural year, which began in October, will amount to 502 thousand bags (bag weight is 60 kg). Grain production is expected to decline by 0.9% to 167.399 million bags, while consumption is expected to increase by 1.5% to 167.901 million bags.

Last agricultural year, the world recorded a surplus of coffee in the amount of 3.657 million bags after underproduction in the previous 3 years.

Throughout November, the aggregate ICO coffee price indicator (which includes different varieties from different producing countries) remained consistently above $1 per pound. The average daily price over the past month increased by 10.1% to $1.07 per pound.

Global coffee exports fell 13.4% in October compared to the same month last year to 8.91 million bags, the lowest volume since September 2017. This was facilitated by a number of factors, including poor weather conditions and long-term low prices on world markets.