In the early morning of October 4 (Vietnam time), at the end of the Robusta coffee trading session on the London floor (UK), delivered coffee prices simultaneously lost the mark of 5,000 USD/ton when the November delivery term was only 4,921 USD/ton. reduced to 190 USD/ton. Thus, after only 2 trading sessions, in this term, coffee has decreased to 524 USD/ton.
At the January 2025 delivery term, Robusta coffee also decreased by 142 USD/ton, to 4,720 USD/ton.
In the domestic market, by the end of the day, it was 116,600 VND/kg (about 4,778 USD/ton), down 4,500 VND compared to the previous day.
The reason for the rapid decline in coffee prices is said to be due to the European Commission (EC) postponing the implementation of the anti-deforestation law (EUDR), causing concerns about a shortage of coffee supply that meets new standards. Coffee prices cool down.
In addition, Vietnam is starting to harvest coffee with the crop expected to not lose too much output causing the coffee price fever to decrease.
Last year, Vietnamese coffee lacked goods, many businesses had to “quit” early. This makes it difficult for businesses to still have to pay fixed costs to operate.
According to statistics, coffee is a product with a very high price increase in the past year when the average export coffee price in the first 9 months of 2024 is estimated to reach 3,897 USD/ton, an increase of 56% over the same period in 2023.
Rice and coffee prices are plummeting
With rice, after India, the world’s No. 1 rice exporter, returned to the popular white rice market with a floor price of 490 USD/ton on September 28, world rice prices in this segment have dropped sharply.
According to an update from the Vietnam Food Association (VFA), the price of 5% broken white rice exported from Vietnam on October 3 was 539 USD/ton, down 13 USD/ton compared to a few days ago; Thai rice 517 USD/ton, down 11 USD/ton; Indian rice 492 USD/ton. Thus, in this segment, Vietnamese rice prices are the highest in the world, reducing competitiveness. However, Vietnam does not have many products in this segment, so there is little pressure to sell.
Above is the price calculated at the export port (FOB). Therefore, if calculated according to the price at the import port (CIF) like Indonesia, the prices of 5% broken rice of major rice exporting countries in the world are not much different.
In the first 9 months of the year, Vietnam’s average export rice price was about 623.8 USD/ton, up 13.1% over the same period in 2023. According to experts, rice prices can establish a new level after when India returns to the market.
