Coffee prices on 08/08/2024: Continue to rise sharply

Coffee prices on August 8 globally

On the global market, the London and New York exchanges continue to show strong increases on August 8.

Which, on the London exchange, the price of Robusta for September 2024 delivery increased by $ 98, reaching $ 4,481/ton. The price for November 2024 delivery increased by $ 96, reaching $ 4,286/ton.

On the New York exchange, the price of Arabica for September 2024 delivery rose by 10.35 cents, reaching 246.30 cents/lb. The price for December 2024 delivery increased by 9.05 cents, reaching 242 cents/lb.

Global coffee prices today continue their strong upward trend today. Arabica prices have returned to their highest levels in nearly a month due to forecasts of colder weather in Brazil, the top-producing country, prompting roasters to buy in.

Colder weather in Brazil has alarmed investors and forced some to close short positions, despite meteorologists dismissing the risk of frost damage to coffee trees.

According to the Agency of Foreign Trade (Ministry of Industry and Trade), demand from European importers is increasing due to the trend of stockpiling inventories before the compliance deadline with the European Union Deforestation Regulation (EUDR).

The EUDR aims to minimize the import of products linked to deforestation and requires strict due diligence and traceability measures for items including coffee.

The D Agency of Foreign Trade reported that last year, EU coffee imports from the global market decreased by 10% due to economic recession and high inflation, causing people to tighten their spending. However, as the economy recovers, the demand for coffee in Europe is expected to increase again.

The European Union has the highest per capita coffee consumption in the world, though consumption varies among member markets. The European coffee market size is estimated to reach $ 47.88 billion in 2024 and is forecast to grow to $ 58.14 billion by 2029, with an average annual growth rate of 3.96% during the 2024-2029 period.

According to the U.S. Department of Agriculture (USDA), the EU is currently the world's largest coffee consumer market, accounting for 24-25% of global consumption. EU coffee imports in the current crop year are estimated to increase by 1 million bags to 25.5 million bags, and this figure is expected to rise by an additional 2 million bags to 47.5 million bags in the 2024-2025 crop year.

Although market demand is high, the amount of this agricultural product available for export from Vietnam is currently not much.

Thus, global coffee prices on 08/08/2024, continue to rise compared to yesterday.

Coffee prices on August 8 domestically

In the domestic market, coffee prices today, August 8, have increased by VND 500 compared to yesterday.

In Lam Dong province, the districts of Di Linh, Bao Loc, and Lam Ha are trading at VND 121,500/kg.

In Dak Lak, Cu M'gar district is purchasing at VND 122,000 VND/kg. Meanwhile, Ea H'leo and Buon Ho districts are trading at VND 121,900/kg.

In Dak Nong province, traders in Gia Nghia and Dak R'lap are trading at VND 122,000 and VND 121,900/kg, respectively.

In Gia Lai province, Chu Prong district is trading at VND 122,000/kg, while Pleiku and La Grai are maintaining the same price of VND 122,000/kg.

In Kon Tum province, the purchase price today is VND 122,000/kg.

Coffee production in Vietnam is increasingly affected by prolonged droughts and rising temperatures, leading to decreased yields and impacting the quality of crops.

The pressure from climate change is particularly severe in the Central Highlands, where severe droughts have scorched many coffee plantations and exacerbated water scarcity.

Thus, domestic coffee prices on 08/08/2024, are trading around VND 121,500 - 122,000/kg.

$ 1 = VND 24.950 - Source: Vietcombank.