Abstract:
World Exportable Production has historically increased at a faster
pace than consumption, resulting in considerable surpluses and periodically
very depressed prices. Compared to some other commodities international
coffee prices have however fluctuated relatively narrowly when the trade
controls of the International Coffee Organisation (ICJ) have been in force.
Disruptions of supply (real or anticipated), usually in the form of crop
failure in Brazil, have caused periods of high prices accompanied by extremely
volatile market conditions.