Speculators are rushing into the coffee market on a buying spree, causing roasters to panic buy and farmers to delay sales in the hope that prices will rise further, traders said, according to Reuters.
Coffee price today 2/5/2025
World coffee prices increased on both London and New York exchanges. Arabica coffee prices continued to rise for many consecutive sessions, while robusta recovered slightly.
Domestic coffee prices have increased again compared to yesterday, currently trading in the range of 127,600 - 128,600 VND/kg. Currently, more than 90% of the coffee area nationwide has been harvested.
Thus, the price of Arabica coffee has increased continuously for 9 consecutive sessions and set an all-time high. The reason is due to concerns about increasingly tight supply, the shortage of supply from Brazil, the world's leading Arabica producer, continues to worry traders. The Brazilian Real also increased against the USD, significantly supporting the increase of the New York floor, helping Arabica continuously set records.
Arabica was also supported by President Trump’s tariffs on South American countries and a volatile dollar. Meanwhile, supply concerns deepened after Brazil posted record exports early in the season, making current availability more limited. Traders said 70-80% of Brazil’s current arabica stocks have been sold and new deals are relatively slow. Brazil produces nearly half of the world’s arabica, the world’s most popular coffee variety used in roasted coffee products.
Additionally, Brazil's arabica coffee output is expected to fall 12.4% to 34.7 million bags in 2025, as heat and drought before flowering have reduced crop yields, according to Reuters.
Robusta coffee prices have temporarily recovered after the decline in London after the traditional long Tet holiday in Vietnam - the world's leading producer and exporter of robusta coffee. This was expected when the Vietnamese market reopened after the holiday. Regarding Vietnam's supply, from the beginning of the season, many experts estimated that output would decrease by 10-15% compared to the same period last year, but at this point, we can be optimistic that output will only decrease slightly by about 5%. This information helps the market temporarily "cool down". However, the weather in the Central Highlands is entering the dry season with higher than average temperatures and low rainfall. This may continue to affect the quality of coffee beans, reduce output and push prices up.
Freight rates are also a factor in the rise in global coffee prices, experts say. Severe port congestion in Brazil has caused logistical difficulties at export ports. Stocks monitored by exchanges are at their lowest since November. However, a recent increase in the number of coffees awaiting inspection may help ease the shortage of supply on the exchange.
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| Domestic coffee prices on February 4 increased and decreased sharply by 2,500 VND/kg in some key purchasing localities. (Source: Newtimes) |
According to World & Vietnam , at the end of the trading session on February 4, the price of robusta coffee on the ICE Futures Europe London exchange for delivery in March 2025 increased by 24 USD, trading at 5,558 USD/ton. The delivery in May 2025 increased by 28 USD, trading at 5,548 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 2.45 cents, trading at 383.35 cents/lb. Meanwhile, the May 2025 delivery term increased 3.05 cents, trading at 377.40 cents/lb. Trading volume was high.
Domestic coffee prices on February 4 increased and decreased sharply by 2,500 VND/kg in some key purchasing localities. Unit: VND/kg
(Source: giacaphe.com) |
Vietnam's coffee exports in 2024 are "both happy and sad", when the export volume is the lowest in the past 9 years, but the revenue has set a new record of 5.6 billion USD thanks to high prices.
According to data from the General Department of Customs, Vietnam's coffee exports in December reached 127,655 tons, doubling the previous month but still 38.5% lower than the same period in 2023.
In 2024, Vietnam exported a total of more than 1.34 million tons of coffee of all kinds, a sharp decrease of 17.1% compared to 2023 and the lowest level in the past 9 years. The main reason is that the output in the 2023-2024 crop year is estimated to decrease by 6% compared to the previous crop year, reaching only about 1.5 - 1.6 million tons.
However, due to the high coffee prices, the export turnover of this item has set a new record of 5.6 billion USD, exceeding 32.5% compared to the old record of 4.24 billion USD achieved in 2023. The average export price of Vietnam's coffee in 2024 reached 4,178 USD/ton, an increase of nearly 60% compared to 2023. Last year, the export price of coffee continuously increased from the beginning of the year and reached the highest level in the history of the industry at 5,720 USD/ton in October, then cooled down and decreased to an average of 5,378 USD/ton in December.
In terms of markets, in general, coffee exports to major consumer markets such as the EU, Japan, the US, Russia, etc. all recorded a decrease in volume but a sharp increase in turnover. In particular, the European Union (EU) continued to be Vietnam's largest coffee export market in 2024, accounting for 39.3% in volume and 38.4% in turnover, reaching 528,582 tons, turnover of 2.15 billion USD, down 12% in volume but up 45.6% in turnover compared to 2023.
Vietnam's leading coffee export markets in general and in the EU in particular include Germany, Italy and Spain, with turnover of 602.9 million USD, 459.6 million USD and 444.8 million USD respectively, up 31.6%, 41.3% and 75.4% over the previous year. Export turnover to other major markets such as Japan, the US and Russia also increased by 30.7%, 10.2% and 25% respectively, despite a relatively sharp decrease in volume.
Notably, coffee exports to many countries in the Asian region such as the Philippines, Indonesia, China, Thailand, Malaysia, Cambodia... grew strongly at double to triple digits in both volume and value compared to 2023.
Source: https://baoquocte.vn/gia-ca-phe-hom-nay-522025-gia-ca-phe-arabica-tang-khong-dung-lien-tiep-lap-ky-luc-tin-vua-vui-vua-buon-ve-hang-xuat-khau-303190.html
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