COFFEE PRICE HITS HIGHEST LEVEL IN YEAR

COFFEE PRICE HITS HIGHEST LEVEL IN YEAR

The average price of coffee traded on world markets has reached $1.20 a pound, its highest level in more than a year, the International Coffee Organization said.

If the price climbs to $1.25 a pound, the world export quota for the 1987-88 year will be increased by 1.5 million bags under the organization's rules. A bag of coffee equals 132 pounds.The average or indicator price is compiled from an average of prices on world markets over a 15-day period.

The organization began regulating supplies with a quota system last October for the first time in 19 months to keep prices within a $1.20 to $1.40 price range for the October-September coffee year. The quota is cut according to movement in the indicator price.

The action was taken by the 74-nation organization after the price of coffee slumped to a five-year low of 90 cents last summer.

The original export quota, divided among the organization's 50 producing members, was 58 million bags, or the estimated import demand for the period.