International prices continued to decline in May, in the context of optimistic outlooks on global grain supply for the coming months.

From the Monthly Coffee Market Report, by the International Coffee Organization:

Coffee prices continued to fall as the market remains well supplied and inventories in consuming countries are high as a result of strong exports in the first seven months of the coffee year. For the first time in three years, Colombian Milds traded above Other Milds. Finally, Conab have released their second estimate of production in Brazil for 2017/18, which they forecast is to decrease by 11.3% to 45.56 million bags compared to crop year 2016/17.

In May coffee prices continued to weaken asthe monthly average of the ICO composite indicator price dropped significantly compared to last month, down 3.8% to 125.40 US cents/lb. The daily price of the ICO composite indicator started the month relatively strongly, making up some of the losses of the previous month and increased to a high of 128.66 US cents/lb on 8 May. However, most of these initial gains were subsequently lost as the market fell to 124.02 US cents/lb by the end of the month.

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