According to congthuong.vn
At the end of the latest trading session, the price of Robusta coffee in London for delivery in July 2024 increased by 73 USD/ton, at 3,892 USD/ton, for delivery in September 2024 increased by 67 USD/ton, at 3,806 USD/ton.
Arabica coffee price for delivery in July 2024 increased by 2.6 cents/lb, at 218.25 cents/lb, for delivery in September 2024 increased by 2.55 cents/lb, at 217.35 cents/lb.
Summarizing last week, the price of Robusta coffee for July delivery increased by 374 USD. The price of Arabica coffee futures for July delivery increased by 11.65 cents. Domestic coffee prices add an average of 11,000 VND/kg.
The Vietnam Commodity Exchange said that the coffee market quickly regained momentum with Robusta increasing by 10.6%, Arabica increasing by 5.6%. Poor supply in main producing countries is causing concerns about coffee shortages in the market, thereby supporting prices to increase again.
In the second 2024 crop survey results report, the Brazilian government’s Crop Supply Agency CONAB raised its output forecast. tomato get high Robusta to 58.8 million bags, up slightly from the previous 58.1 million bags.
However, CONAB lowered the country’s Robusta coffee production forecast by 600,000 bags, down to 16.7 million bags in the latest report.
In addition, information from Brazilian farmers said that their Arabica coffee harvest is going quite slowly and the small fruit size may affect this year’s output.
The increase in coffee last week was assessed from many sources. There is information from trading house Volcafe saying that Vietnam’s Robusta coffee output in the 2024/25 crop year may only reach 24 million bags, the lowest in 13 years. Due to poor rainfall in Vietnam, “irreparable damage” has been caused.
In addition, the shortage of empty containers, pushing up ocean freight rates, has affected the selling price of agricultural products.
In addition, some experts point out that the European Union’s impending adoption of anti-deforestation regulations on goods imported into this market, including coffee, is also a factor driving up prices. coffee increases as a significant portion of the world’s coffee acreage comes from deforestation.
Commenting on the market this week, experts say that the upward momentum is still present in the context that sea freight rates have not been able to “cool down”. However, it is difficult to return to the previous record peak of 135,000 VND/kg.
On the domestic market, recorded at the end of last week (May 25), the price of green coffee in the Central Highlands and Southern provinces increased by 1,500 VND/kg, bringing the domestic coffee purchasing price to 114,500 – 116,000 VND/kg. Compared to a week earlier, domestic coffee prices have increased sharply by about 12,000 VND/kg.
Overall for the past week, despite downward pressure on the weekend, domestic coffee prices still increased by an average of nearly 10%, equivalent to 11,000 VND/kg. Compared to the record high price peak of nearly 140,000 VND/kg set at the end of April, the current price level is only about 15% lower.
The Ministry of Agriculture and Rural Development said that Vietnam’s coffee output in the 2023-2024 crop year could decrease by 20% to 1.47 million tons, the lowest level in 4 years, due to drought.
This information has pushed the price of Robusta coffee in the Vietnamese domestic market to an unprecedented increase in just a few days. Vietnam is ranked as the world’s second largest producer of coffee beans and the largest producer of Robusta coffee. But many domestic farmers are switching to growing durian, reducing the coffee growing area and reducing supply.
Coffee grows best in the tropics, and increasing efforts to combat deforestation make it increasingly difficult to find new land to grow coffee.
This trend appears in the context of increasingly scarce supply due to the El Nino weather phenomenon causing drought in Southeast Asia.
In Dak Nong, this province has about 142,000 hectares of coffee, with an output of over 360,000 tons. Dak Nong’s coffee area and output ranks third in the country and the Central Highlands region (after the two provinces of Dak Lak and Lam Dong). For many years, when coffee prices were low and not commensurate with the investment and care, many farmers gradually switched to higher value trees. This year, coffee prices at a record high will be an opportunity to motivate farmers to continue investing in caring for and restoring this crop area.
