Last night, September 23, the Vietnamese coffee trading community witnessed a turbulent trading session when coffee prices on the ICE Futures Europe exchange (London, UK – opened at 4:00 p.m. September 23 and closed at 0:30 a.m. September 24, Vietnam time) increased sharply across all trading terms after a week of price declines due to profit-taking pressure from investors.
Accordingly, compared to the end of last week, the price of Robusta coffee futures for November delivery increased to 5,276 USD/ton, an increase of 217 USD/ton; the price of January 2025 delivery increased to 5,003 USD/ton, an increase of 200 USD/ton; the price of March 2025 delivery increased to 4,816 USD/ton, an increase of 202 USD/ton and the price of May 2025 delivery increased to 4,682 USD/ton, an increase of 197 USD/ton.
Vietnam is the world’s second-largest coffee exporter but the leading exporter of Robusta. Global coffee roasters and processors are increasingly relying on Vietnamese Robusta due to its improved quality, increased processing, and consumer preference.
On the New York Stock Exchange (USA), Arabica coffee futures for November delivery rose to $5,810/ton, up 5.14% from the previous day; other futures also increased around the 5% range.
Robusta coffee returns to growth
Factors causing coffee prices to increase were given by experts as reduced Robusta coffee inventories on the floor; escalating tensions in the Middle East and forecasts of a poor coffee crop in Vietnam.
Currently, the Central Highlands is starting to harvest the first coffee of the season and will be harvested in October and November. The selling price of early season Robusta coffee is at 115,000 – 120,000 VND/kg, a slight decrease compared to before the harvest.
Some early harvest gardens reported a 10-20% decrease in yield due to the impact of early season drought. However, thanks to rising coffee prices, profits are estimated at VND200-250 million/ha.
According to data from the General Department of Customs, in the first 8 months of 2024, Vietnam exported 1.06 million tons of coffee, worth 4.01 billion USD, down 12.1% in volume but up 35.6% in value over the same period last year thanks to a sharp increase in export prices with an average unit price of 3,783 USD/ton.
