Arabica coffee prices slightly adjusted, robusta inventories continued to decrease; is coffee certification necessary or not?

The most fundamental benefits of achieving coffee certification are market access. Organically certified coffee has access to developed and trusted markets. Fairtrade certification, in addition to access to highly developed markets, also benefits from technical support from Fairtrade importers.

World coffee prices, arabica continued to adjust down slightly. London market is closed for Summer bank holiday (Monday, August 28), closed all day without trading.

The focus of the market last week was the September options contract expiration and the first notice day (FND) on both exchanges, forcing funds and speculators to balance and adjust their net positions.

In addition, the continued strong pressure of the USD has caused funds and speculators to aggressively liquidate and transfer capital to other derivative markets, and US stocks are offering more attractive returns.

The goal of pushing back high inflation is a top concern at this year's Jackson Hole Symposium.

Meanwhile, the volatility of the Real remains in focus, as the world’s top coffee producer and exporter Brazil is the main supplier to the market right now, having harvested a record crop this year.

Robusta coffee inventories certified and monitored by the London Exchange, as of August 25, decreased by another 4,560 tons, or 11.80% compared to the previous week, to 34,080 tons (about 568,000 bags, 60 kg bags), continuing to fall to the lowest level since 2016.

Giá cà phê hôm nay 25/6/2023: Giá cà phê. (nguồn: pinterest)

Domestic coffee prices today, August 29, increased by 100 - 200 VND/kg in key purchasing localities. (source: pinterest)

At the end of the first trading session of the week (August 28) on the international futures exchange, the price of robusta coffee on the ICE Futures Europe London exchange for November 2023 delivery increased sharply by 31 USD, trading at 2,437 USD/ton. The January 2024 delivery increased by 24 USD, trading at 2,349 USD/ton. Trading volume was low.

Arabica coffee prices on the ICE Futures US New York exchange for December 2023 delivery continued to decrease slightly by 0.4 cents, trading at 152.75 cents/lb. Meanwhile, the March 2024 delivery period decreased by 0.45 cents, trading at 153.85 cents/lb. Trading volume was low.

Overall, the London market had 5 consecutive sessions of increase in the 33rd week. The price of Robusta coffee futures for November delivery increased by 74 USD, or 3.13%, to 2,437 USD/ton, and the price of futures for January 2024 delivery increased by 47 USD, or 2.04%, to 2,349 USD/ton, quite significant increases. Trading volume was above average .

Similarly, the New York market had 3 sessions of increase and 2 sessions of decrease. The price of Arabica coffee futures for December delivery increased by 3.15 cents, or 2.10%, to 153.15 cents/lb and the price of January 2024 delivery increased by 2.85 cents, or 1.88%, to 154.30 cents/lb, both significant increases. Trading volume was quite high above average.

Domestic coffee prices today, August 29, increased by 100 - 200 VND/kg in key purchasing localities.

Average price	Change
USD/VND exchange rate	23,920	+ 0
DAK LAK	65,700	+ 100
LAM DONG	65,000	+ 100
GIA LAI	65,300	+ 200
DAK NONG	65,900	+ 100

Unit: VND/kg.

(Source: Giacaphe.com)

Coffee certification is everywhere today. Among other benefits, the most fundamental benefit of achieving coffee certification is market access.

For example, according to statistics from the International Coffee Organization (ICO), although not guaranteed preferential treatment compared to conventional coffee and there are significant differences between consuming markets, organic certified coffee has been paid a higher price than conventional coffee by an average of 660 USD/ton.

Certification programs vary in content and approach, but share a common goal of developing sustainable coffee.

According to giacaphe.com , the popular coffee certifications in the world today include:

- Organic coffee, this is part of the Organic agriculture system.

- Fair Trade / Fairtrade certified – fair trade coffee.

- Rainforest Alliance/UTZ certification

- The 4C coffee program produces coffee in accordance with a common set of rules for the coffee community called 4C coffee (The Common Code for The Coffee Community).

- Direct trade – Direct trade, this is not really a certification but a trade movement.

In addition, depending on the region (such as Latin America), other certifications will be applied to the coffee producing community in that region, such as Shade Grown Coffee or Bird Friendly Coffee...

Source