Coffee prices on 08/09/2024: turning down

Coffee prices on August 9 globally

Globally, both London and New York exchanges saw a significant decline on August 9.

On the London exchange, Robusta for the September 2024 contract decreased by $ 45, reaching $ 4,436/ton. The November 2024 contract also fell by $ 33, settling at $ 4,253/ton.

On the New York exchange, Arabica for the September 2024 contract dropped slightly by 1 cent, to 245.30 cents/lb. The December 2024 contract fell by 2.65 cents, reaching 239.35 cents/lb.

Global coffee pricescoffee prices have reversed today following a significant increase in exports for July 2024 (44%). The market is also making technical adjustments after a few days of strong gains.

According to Bloomberg, global Robusta prices are expected to rise significantly and persist due to concerns about a shortage of supply from Vietnam.

The ICO forecasts that the world may face a Robusta shortage of up to 35 million bags (60kg/bag) by 2040. Additionally, Robusta prices are supported by increased demand from European buyers ahead of the new EUDR anti-deforestation regulations taking effect.

Vicofa reports that adverse weather conditions, along with outbreaks of mealybugs and red spider mites, will reduce Vietnam’s Robusta production for the next season by 15-20%.

Vicofa estimates that Robusta production for 2023/24 is around 26.7 million bags, with the 2024/25 season expected to range from 21.4 to 22.7 million bags. This is significantly lower than the previous preliminary forecast of 24 million bags by Volcafé and much lower than the recent estimate of 27.85 million bags by the USDA.

Coffee prices on August 9 domestically

In Vietnam, coffee prices today have decreased slightly by VND 300 compared to yesterday.

In Lam Dong province, the districts of Di Linh, Bao Loc, and Lam Ha are trading at VND 121,300/kg.

In Dak Lak, the district of Cu M'gar is buying at VND 122,000/kg, while Ea H'leo and Buon Ho 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, Chư Prong is trading at VND 121,800/kg, while Pleiku and La Grai are both at VND 121,700/kg.

In Kon Tum, the buying price today is VND 121,800/kg.

Today, domestic coffee prices have also slightly decreased but remain around VND 122,000/kg.

In July 2024, Vietnam exported 62,000 tons of coffee, earning $ 340 million. Cumulatively, for the first seven months of 2024, the country has exported 964,000 tons of coffee, generating $ 3.54 billion, a 13.8% decrease in volume but a significant 30.9% increase in revenue compared to the same period last year.

The Vietnamese coffee industry is facing several challenges, including natural conditions, geopolitical tensions, and rising production costs.

However, as the world’s second-largest coffee exporter, Vietnam's coffee sector, with ongoing efforts to improve the value chain, still has the opportunity to overcome difficulties and continue making significant contributions to the national economy.

Thus, domestic coffee prices on 08/09/2024, are trading around VND 121,300 - 122,000/kg.

$ 1 = VND 24.910 - Source: Vietcombank.