Source: thuonghieucongluan.com.vn
Coffee prices increased sharply in the first month of the year
Coffee prices today January 30, 2023 in the world and domestic markets are sideways. Currently, the domestic coffee price is kept at 42,200 – 42,800 VND/kg.
At the time of the survey, the price of Robusta coffee on the London floor for delivery in March 2023 was at $2,053/ton; The price of coffee delivered in May 2023 on this floor remained at $2,016/ton. The price of Arabica coffee on the New York Stock Exchange delivered in March 2023 was anchored at 169.90 cents/lb. For delivery in May 2023, the price of coffee on the floor is 170.05 cents/lb.
According to experts, technical activities when funds and speculation buy up short-selling contracts have helped the coffee market on the two exchanges increase sharply. In addition, the US economic index reports with positive data supported most of the commodity market in general. Because this data speculates that the Fed may slow down the momentum of raising USD interest rates at the monetary management meeting this week…
In addition, according to market analysts, the price of coffee increased sharply in the first month of 2023, making producers and exporters excited. The recent increase is the convergence of very favorable conditions due to the long Lunar New Year holiday in Vietnam, plus the careful business credit situation from the bank, so sales volume trivial.
In addition, Brazil and Indonesia are not interested in selling because their local currencies have increased against the USD. The value of the Brazilian Reais (BRL) is now around 5.10 BRL for 1 USD compared to 5.50 BRL before…
Exports to the EU market are under pressure
According to experts, in 2022, the coffee industry will become a bright spot in the country’s agricultural exports, but this item is also expected to face many difficulties and challenges in Europe (EU) accounts for more than 46% of total coffee exports.
“Entering 2023, coffee exports will face many difficulties and challenges, especially in Europe including 27 countries in the EU and a number of countries outside the EU, where accounting for more than 46% of total coffee exports. Vietnam’s exports…”, said Mr. Nguyen Nam Hai, Chairman of the Vietnam Coffee and Cocoa Association.
Currently, the EU region is still very volatile due to the war between Russia and Ukraine, along with the high inflation of countries in the region. This will greatly affect Vietnam’s coffee exports to the European market. The US Department of Agriculture forecasts that global coffee production in the 2022-2023 crop year is forecast to increase, while a disproportionate increase in demand will put pressure on output.
Many opinions also said that building a brand in the EU market is not an easy task. Enterprises (DN) need to take very methodical steps and wise strategies to be able to bring their own brands into the market. The EU is a market with very strict requirements and regulations, very high standards in terms of quality, environment, society, labor… In particular, goods need to be identical in quality between different countries. The new shipment retains the reputation of the enterprise with its import partner in the EU.
