| Coffee exports gradually conquer the 4 billion USD mark. Vietnam enters the harvest season, coffee export prices reverse and decrease slightly. |
According to the latest data from the General Department of Customs, Vietnam exported 50,967 tons of coffee (equivalent to 849,450 60kg bags) in September, down sharply by 39.8% compared to August and 47.2% compared to the same period in 2022.
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| Coffee export value in 9 months was 0.7% higher than the same period last year. |
Cumulative coffee exports in the first 9 months of this year stood at 1.25 million tons, down 8.3% year-on-year, and the total export value was 0.7% higher than the same period last year.
Coffee prices continued to increase in yesterday's trading session. According to statistics from the Vietnam Commodity Exchange (MXV), after the trading session on October 10, Arabica coffee prices increased by nearly 1% compared to the reference price after the domestic currency of Brazil strengthened, limiting the demand for coffee of this country's farmers.
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| Coffee prices recover |
Although the Dollar Index lost only 0.24% in yesterday's session, the strengthening of the Brazilian Real pushed the USD/Brazil Real exchange rate down sharply by 1.63%. The narrowing exchange rate differential has prompted Brazilian farmers to be more restrictive in selling their coffee, earning less local currency.
In addition, after hitting a nearly 6-month low, the price of Robusta January 2024 contract improved in yesterday's session with a slight increase of 0.09% compared to the reference. Coffee exports in September continued to decline in Vietnam, causing concerns about the supply to flare up again.
Following the same trend of world prices, in the domestic market, this morning, the price of green coffee beans in the Central Highlands and the Southern provinces recovered slightly by 100 VND/kg, ending a series of 7 consecutive days of deep decline. Accordingly, domestic coffee was purchased at around 63,300 - 63,900 VND/kg. However, compared to the end of September, the domestic coffee price is still nearly 3,000 VND/kg lower.
In 2022, Vietnam's coffee exports reached more than 4 billion USD for the first time, thanks to the third highest export volume in the past 10 years, with 1.78 million tons. According to the Ministry of Agriculture and Rural Development, due to the increase in coffee exports in 2022, the export reserves for 2023 are low, while the coffee output harvested in the 2022/2023 crop year decreased by 10-15% compared to the 2021/2022 crop year due to unfavorable weather. As a result, the amount of coffee exported decreased sharply this year. However, thanks to the export price of coffee increasing by 10% compared to the previous year, the export value still increased slightly in the first 9 months of this year.
Currently, in early October 2023, farmers have also begun harvesting early-ripening coffee for the 2023/2024 crop year. This could help increase supply for coffee exports in the coming time.
In terms of types, according to statistics from the Ministry of Industry and Trade, processed coffee exports increased by nearly 22% in the first 7 months of this year to 448.7 million USD, accounting for 17% of total coffee exports, up from 15% in the same period last year. In contrast, the proportion of green coffee (including Robusta and Arabica) decreased to 83.3% compared to 85% in the same period. The increase in processed coffee exports also helped increase export value.
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