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Average Premium of Colombian Coffee Increased more than 30% in July at 18.04 ¢/lb: FNC

By: Diana Delgado, Contractor

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Average Premium of Colombian Coffee Increased more than 30% in July at 18.04 ¢/lb: FNC

Bogota (Coffee Network) –The premium for Colombian coffee increased more than 30% in July on the month and on the year, according to a report by the coffee growers federation.

The average premium  per pound above the ICE Futures U.S. benchmark “C” contract for Colombian usual good quality Arabica was 18.04 ¢/lb in July , a 37.29% increase over the previous month. This is 36.0% higher than in July 2024. Yet it remains below the 20 ¢/lb mark for more than two years. However, this is the first time this year that the spread has closed at a monthly average above 15 ¢/lb, the coffee growers federation said in a report,

Meanwhile, the domestic price for two bags of parchment coffee carrying 125kg averaged COP2.369,903 per load ($592), representing a 12.2% decrease compared to June, but a 26.3% increase compared to the same month last year. This monthly decline is primarily due to the performance of the KC contract on the New York Stock Exchange, which fell 12.1% compared to the previous month.

Despite the month-over-month decline, this is the highest historical average for the reference month. The downward trend of the last four months continued, but the price remains at historically high levels for Arabica coffee. This month-over-month performance reflects recent market volatility, driven by uncertainty surrounding the tariffs imposed by the U.S.

During the month, the average price of the KC Contract (New York Stock Exchange) closed at 295.1 ¢/lb, 24.8% higher than in July 2024, but 12.1% lower than the price recorded in the immediately preceding month. Similarly, the ex-dock price reached a monthly average of 323.66¢/lb, down 11.8% from the previous month but up 25.5% from July 2020

Furthermore, the smooth progress of the harvest in Vietnam and Brazil, favored by lower short-term weather risks, suggests coffee availability and is pushing prices down, as was the case last month. Additionally, the exit of financial investors who held long positions, that is, those betting on higher prices, has increased the downward pressure on the KC contract. These factors, along with increased supply from other countries such as Uganda, have influenced price behavior this month.

According to the International Coffee Organization (ICO), the composite indicative price decreased by 12.1% compared to the previous month, standing at 259.31 ¢/lb. Regarding the prices of the Arabica indicator groups, the prices of Colombian Milds and Other Milds decreased by 10.5% and 10.4%, respectively, compared to June.

The Colombian coffee differential averaged 18.04¢/lb in July, 36.0% higher than in July 2024. • The exchange rate (TRM) closed the month of July at an average of $4,047.29 COP/USD, representing a positive annual variation of 0.26%.

Value of Harvest

In July, the value of the harvest stood at COP2.17 trillion pesos, a 67.3% increase compared to July 2024, when it reached COP1.3 trillion pesos. In the 12-month period, the value of the harvest stood at COP22.81 billion pesos. Thus, the value of the harvest reached just over double the value reported for the 12-month period of the same month last year.

In July, coffee production was 1.37 million bags, representing a positive annual increase of 18.5%. In the seven months to date, production has reached 7.59 million bags, an increase of 8.7% compared to the January-July period of last year. Similarly, in the 12-month period, production was 14.6 million 60-kg bags, maintaining a growth of 18.2% compared to the same period last year.

In July, coffee inventories in Colombia increased by 13.1% compared to June, reaching 988,000 bags. This volume is 4.7% lower than that observed in July 2024. Although a high average level of inventories was seen in the first months of 2025, these fell sharply from March to June.

By Diana Delgado

 

  • Coffee

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