July Arabica coffee traded on Wednesday closed up 11.85 cents/pound and July Robusta coffee closed with an unprecedented increase in the coffee industry’s trading history of $218 at $4,195/ton.
Although Arabica coffee is only at its highest level in 2 years, the price of Robusta coffee has increased to its highest level of all time, far surpassing the historical high mark set in 1994 when Brazil was devastated by frost 50 years ago. % Quantity.
All causes of price increases are briefly described in one sentence as concerns about the crop and crop situation in Brazil and Vietnam.
Stocks of certified graded Arabica coffee held on the New York market are said to have decreased by 1,064 bags yesterday, placing the stock at 623,481 bags.
Coffee momentum increased so strongly that this market even ignored the sharp depreciation of the Brazilian Real and it seemed that Brazilian Farmers did not sell coffee like every time their real currency dropped, indeed the Real started to decrease from April 11 to 5.1 reals for 1 USD, and by April 16 it dropped further to nearly 5.3 reals for 1 USD. The Real has slightly improved compared to the dollar yesterday, currently at 5.23 reals, but the market seems to no longer pay attention to this factor.
In addition to the reasons stated in many recent news reports, when it is said that coffee prices increased due to drought, little rain, and no irrigation water in Vietnam and Brazil, there is another reason. More quietly, global consumption is also increasing. Total coffee servings grew 5% year-over-year globally.
According to data, Circana Company’s CREST Commercial Food Service, a company headquartered in Chicago, Illinois, operates in more than 20 countries with a staff of more than 10,000 people.
This growth trend is observed in 11 of the 12 countries tracked, with China emerging as the leader, with the highest growth rate in coffee consumption.
Below is some cultural/health information about coffee
According to a study by Danish scientists on Vietnamese Coffee, they came to some short conclusions:
Coffee: a Risky Crop
Vietnam is one of the largest coffee producing countries in the world. Coffee is a perennial crop and production takes place mainly in the Central Highlands on small, family-run farms.
Coffee trees have a lifespan of more than 50 years, cutting down trees to make land suitable for other forms of agricultural production is an expensive and labor-intensive job. Conversion is expensive. This means that when coffee prices are low, farmers cannot easily abandon coffee production in favor of other crops.
When unable to quickly adjust the area of coffee crops, farmers are vulnerable to large fluctuations in international commodity prices.
Kinh Vu (giacaphe.com)
