Specifically, Arabica coffee prices increased by 0.3%, approaching the two-and-a-half-year high recorded in mid-July; Robusta coffee prices broke the record set in the previous session, creating a new historical peak when approaching the 5,000 USD/ton mark.
The market continues to react to weather risks that could impact the outlook for Brazil’s 2025-2026 coffee crop. Fears of a return of frost in late August have not passed, but coffee farmers in Brazil are facing drought conditions in major coffee plantations.
Many coffee growing areas in the Southeast of the country have not received rain for nearly two months and this is expected to continue into September. The lack of rain will adversely affect the 2025-2026 coffee crop that is currently flowering, thereby negatively affecting the supply outlook.
In the domestic market, recorded this morning, August 22, the price of green coffee beans in the Central Highlands and the Southern provinces moved in line with the world price when it suddenly increased by more than 1,000 VND/kg compared to yesterday, currently fluctuating around 119,000 – 119,800 VND/kg.
In other notable developments in the industrial raw materials market, cocoa prices continued to rise, rising nearly 1% amid concerns about supply shortages in major producing countries. Companies said they still had major concerns about the production situation in Ghana, the world’s second-largest cocoa producer.
Adverse weather conditions and disease have prompted the country’s cocoa industry to cautiously set a target of 650,000 tonnes of output, down from the previous forecast of 810,000 tonnes.
Vietnam’s coffee exports are forecast to reach a record $5 billion in 2024, and the coffee industry will contribute to overall economic growth. Coffee will be a valuable export item joining the $5 billion+ export club.
According to the Ministry of Agriculture and Rural Development, in the first 7 months of 2024, Vietnam exported 964 thousand tons of coffee, reaching a turnover of 3.54 billion USD. It is worth noting that, despite the decrease in quantity, the value of coffee export turnover in the first 7 months increased by 30.9%.
