What is ICO composite indicator Please explain whitin 150 words

The ICO composite indicator is a measure of the average price for coffee beans traded worldwide. It is calculated by taking into account the prices of arabica and robusta beans, which are the two main types of coffee beans produced globally. The indicator is published monthly by the International Coffee Organization (ICO) and is used as a benchmark for the coffee industry.

The ICO composite indicator is calculated based on a basket of coffee prices, which includes both washed and unwashed arabica and robusta beans from different origins. The prices are weighted according to the volume of coffee produced in each country.

The indicator is important for coffee producers, traders, and consumers as it provides a snapshot of the global coffee market. It can also be used as a reference for pricing contracts and for making investment decisions in the coffee industry. The ICO composite indicator is widely used as a tool to monitor the coffee market and to assess the impact of factors such as weather, crop diseases, and political instability on coffee prices