In the early morning of October 3 (Vietnam time), on the London floor, the price of Robusta coffee futures delivered in November 2024 was at 5,111 USD/ton, down 334 USD/ton compared to the beginning of yesterday morning (equivalent to 6,000 USD/ton). 13%). With the delivery term of January 2025, the price of Robusta coffee also decreased to 317 USD/ton, trading at 4,862 USD/ton.
Compared to the trading session on September 27, the time when Robusta coffee prices reached their highest peak, the current price has decreased to 416 USD/ton. This is also the first time in the past few months that coffee prices in the world have dropped so sharply, ending a series of consecutive days of setting record levels.
Especially in Vietnam, the price of exported Robusta coffee beans recently surprised everyone with an unprecedented increase and was higher than the price of Abarica coffee beans, which has never happened before. Previously, the price of Robusta coffee was usually only 1/3 to 1/2 of Arabica coffee.
Robusta coffee prices dropped miserably after the trading session on October 2. (Illustration)
Therefore, the dramatic drop in price of Robusta coffee has surprised many people.
Experts say that the main reason is that the European Commission (EU) on October 2 announced a postponement of the implementation of the anti-deforestation law (EUDR) after receiving opposition from exporting countries of all kinds. Affected agricultural products such as coffee, palm oil, rubber, soybeans, wooden furniture…
According to the roadmap, EUDR will be applied from 2025, requiring manufacturers to prove that the above products do not originate from deforestation. This causes many batches of coffee to become unqualified for import into the EU, not only due to the impact of deforestation but also due to failure to meet procedures and documents.
If EUDR is applied according to the roadmap, the coffee supply will become short, contributing to high coffee prices. Therefore, when the EUDR postponed its application, coffee prices cooled accordingly.
Another reason is that investors are also wanting to withdraw capital from the market amid escalating war in the Middle East.
Meanwhile, some opinions also say that, with some of the world’s largest coffee exporting countries also entering a new harvest season, the supply will therefore become more abundant in the immediate future. This contributed to the decrease in coffee prices in the last two trading sessions.
In Vietnam, the sharp drop in Robusta coffee prices will directly affect the revenue of the coffee market, when Vietnam has up to 94% of the area planted with this coffee bean variety.
