Freight rates are one of the reasons for the increase in global coffee prices. Severe port congestion in Brazil has caused many difficulties in logistics activities at export ports, according to the Import-Export Department, Ministry of Industry and Trade.
Coffee price today 2/5/2025
World coffee prices have increased sharply on both the London and New York exchanges. Notably, the price of Arabica coffee has not only increased for 10 consecutive sessions but also increased very strongly in the last session, reaching a new record, as roasters are trying to ensure supply.
Domestic coffee prices today are trading in the range of 129,800 - 130,700 VND/kg, increasing continuously after the long Tet holiday.
Supply concerns in the world’s two largest coffee producers, Brazil and Vietnam, have pushed coffee prices to record highs. Brazil’s coffee exports hit record highs early in the season, making available coffee even more limited. Traders say 70-80% of Brazil’s current arabica stocks have been sold and new deals are relatively slow. Freight rates are also a factor in the rise in global coffee prices. Severe port congestion in Brazil has caused logistical difficulties at export ports.
Brazilian farmers are reluctant to sell, due to uncertainty about the upcoming crop and expectations of higher prices. Brazil produces nearly half the world’s Arabica beans and suffered one of the worst droughts in history last year. Concerns about global coffee supplies have been fueled by fund buying amid tight prices.
Meanwhile, according to experts, when coffee prices are this high, fundamentals become less important. Speculators will continue to speculate. Many will be attracted to coffee after seeing what happened to cocoa and the price increase they missed. This has pushed Arabica coffee to continuously increase for 10 consecutive sessions.
Experts also said that although both exchanges are in overbought territory, bullish sentiment remains strong as US President Trump imposes tariffs and threatens to impose tariffs on goods from many countries.
According to World & Vietnam , at the end of the trading session on February 5, the price of robusta coffee on the ICE Futures Europe London exchange for delivery in March 2025 increased by 85 USD, trading at 5,643 USD/ton. The delivery in May 2025 increased by 98 USD, trading at 5,646 USD/ton. Average trading volume.
Arabica coffee prices on the ICE Futures US New York exchange continued to increase sharply, with the March 2025 delivery term up 14.4 cents, trading at 397.75 cents/lb. Meanwhile, the May 2025 delivery term increased 13.25 cents, trading at 390.65 cents/lb. Trading volume was high.
Domestic coffee prices on February 5 increased by 1,000 - 1,100 VND/kg in some key purchasing localities. Unit: VND/kg
(Source: giacaphe.com) |
On February 5, the Brazilian Coffee Industry Association (ABIC) predicted that in the next few months, world coffee prices will continue to increase and break the current record price.
Speaking at a press conference in Sao Paulo, ABIC President Pavel Cardoso said that the price of Arabica coffee on the New York floor exceeded 4 USD/1 pound (0.45 kg) in the trading session on the same day, a record price, and after increasing 70% last year.
He predicted that this price will remain the same for the next few months and will even continue to increase due to the difficult coffee farming situation in Brazil, the world's largest coffee producer and exporter.
Brazilian coffee growers have struggled over the past four years due to extreme weather events that have severely affected their crops. In 2021, frost hit coffee cultivation in Brazil, causing severe damage to the 2022 harvest. In 2023, the worst drought in decades was recorded due to El Nino, and in 2024, La Nina brought heavy rains and floods, making coffee cultivation in Brazil difficult.
Brazil is expected to harvest 51.8 million (60-kg) bags this year, down 4.4% from 2024, according to data from the National Supply Company (Conab), part of the Agriculture Ministry.
The situation is further complicated by rising global demand and logistical issues, Cardoso said. In the medium term, the Brazilian coffee industry expects prices to “recover” from the downward trend that began in the second half of the year, although this will depend on the outcome of the current harvest, which ends in September.
Source: https://baoquocte.vn/gia-ca-phe-hom-nay-622025-gia-ca-phe-arabica-tang-10-phien-lien-tiep-thi-truong-con-tiep-tuc-pha-ky-luc-gioi-dau-co-khong-muon-bo-lo-co-hoi-303323.html
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