Coffee prices reversed continuously over the weekend, Arabica increased sharply; Robusta also benefited

World coffee prices fluctuated strongly in the second quarter of 2023, especially for robusta. Accordingly, the price of robusta coffee increased to a record level of 2,900 USD/ton in the context of high demand for this coffee bean when inflation persisted, everything became expensive and consumers tended to look for cheap items to replace expensive arabica coffee beans.

World coffee prices fluctuated strongly in the last sessions of this week. At the end of the week, Robusta coffee prices regained what they had lost in the previous session. Arabica coffee prices maintained their upward momentum, continuing with a good increase.

The domestic coffee market closed the weekend session with a sharp increase compared to the same time yesterday. In recent days, domestic coffee prices have fluctuated continuously following the London exchange - increasing and decreasing erratically.

On the London exchange, the inverse price structure between the two most recent maturities continued to widen, a sign that spot demand is very tight. The London exchange inventory report on July 20 decreased by another 20 tons to 52,730 tons. Adding to the increase in London prices was the poor preliminary export report for the first half of July from Vietnam Customs - the world's largest producer and exporter of robusta coffee, down 3.64% compared to the same period last year.

Brazil's falling currency has helped prices of the country's key agricultural exports regain some value over the past two days.

Giá cà phê hôm nay 21/6: Robusta khó tăng, ICO duy trì dự báo thâm hụt khoảng 3,1 triệu bao, cà phê Việt 'thắng lớn'. (Nguồn: praguemonitor)

Domestic coffee prices today, July 22, reversed and increased sharply by 1,200 - 1,300 VND/kg in some key purchasing localities. (Source: praguemonitor)

At the end of this weekend's trading session (July 21), robusta coffee prices on the ICE Futures Europe London exchange increased. Robusta coffee futures for September 2023 delivery increased by 66 USD, trading at 2,602 USD/ton. November delivery futures increased by 49 USD, trading at 24.41 USD/ton. Trading volume was low.

Arabica coffee prices on the ICE Futures US New York exchange, September 2023 delivery increased by 3.8 cents, trading at 161.85 cents/lb. Meanwhile, December 2023 delivery increased by 3.25 cents, trading at 161.55 cents/lb. Trading volume increased on average.

Domestic coffee prices today, July 22, reversed and increased sharply by 1,200 - 1,300 VND/kg in some key purchasing localities.

Average price	Change
USD/VND exchange rate	23,480	0
DAK LAK	66,700	+ 1,200
LAM DONG	66,200	+ 1,300
GIA LAI	66,500	+ 1,200
DAK NONG	66,900	+ 1,200

Unit: VND/kg.

(Source: Giacaphe.com)

Information on supply and robusta output in the 2022-2023 crop year from many leading suppliers, including Vietnam, has decreased sharply, causing a shortage of supply.

On average in the second quarter, the world price of robusta coffee averaged about 2,700 USD/ton, up 35% over the same period last year.

Meanwhile, the arabica market remained subdued in the second quarter as it is considered a higher priced coffee bean.

As a result, demand for Arabica has declined during the economic downturn. Many roasters and coffee shops have chosen to blend Arabica and Robusta to reduce costs. Arabica coffee prices ended the second quarter at 160 US cents/pound, down 15% from the beginning of the quarter.

The ICO said the decline in arabica coffee prices was due to additional supplies from the ongoing harvest in Brazil, the world's largest arabica coffee producer, and recent reports that favorable weather conditions are supporting the current harvest.

Meanwhile, robusta coffee is benefiting from the trend of shifting demand from high-quality and expensive arabica coffee to cheaper coffees in the context of a global economic downturn and rising consumer living costs.

Source