Robusta Coffee Falls Slightly in Europe -- Market Talk

Liffe's July contract is down 0.5% at $1,640/tonne. The International Coffee

Organization says in its December report that although prices in December rose slightly compared to

November, the ICO composite indicator is still at its second‐lowest level of the year, after

2013 recorded the lowest average annual price since 2009. Coffee prices fell consistently over 2013,

with decreases recorded in nine out of the last twelve months. "This price performance has been

driven by a surplus of production over consumption, as high prices in 2011 encouraged producers to

invest in and expand their output," says the ICO. "That trend has now been reversed, as prices fall

below the cost of production and deter further investment," it adds, noting however that demand

remains buoyant.