Last week, the price of robusta coffee in London for November 2023 delivery increased by 74 USD/ton; the price of arabica coffee for December 2023 delivery increased by 4.3 cents/lb. Following the increase of the London floor, the price of domestic coffee increased by an average of 1,400 VND/kg.
Robusta coffee prices have continued to rise as inventories have dwindled without any sign of replenishment from major producers. A new sales method is gaining popularity, with sellers finding that selling directly off the market will reduce many of the indirect costs for all parties. The global supply of robusta coffee continues to be in short supply at the moment.
Concerns about tight supplies at the end of the year supported the market to increase prices. The coffee market ended the week with mixed movements. Arabica coffee prices adjusted down due to abundant supplies from Brazil, with an expected output of nearly 50 million bags, and new crop sales are still strong thanks to the weakening of the Real exchange rate.
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| Domestic coffee prices increased by 500 - 600 VND/kg in key purchasing localities in the closing trading session last week (August 26). (Source: Coffeeam) |
The USDX reversed to a two-month high, pushing emerging currencies lower, reducing buying interest as funds and speculators retreated. This caused arabica coffee prices to reverse lower, while robusta stocks continued to rise as inventories were low.
At the end of the trading session on August 25 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 fell 1.15 cents, trading at 153.1 cents/lb. Meanwhile, the March 2024 delivery fell 1 cent, trading at 154.3 cents/lb. Trading volume was low.
Domestic coffee prices increased by 500 - 600 VND/kg in key purchasing localities in the closing trading session last week (August 26).
Unit: VND/kg. (Source: Giacaphe.com) |
According to preliminary statistics from the General Department of Customs, Vietnam's coffee exports in July reached 108,870 tons, worth 37.86 million USD, down 22.6% in volume and 18.4% in value compared to June 2023. Compared to the same period in 2022, it decreased by 7.6% in volume but increased by 14.1% in value.
In the first 7 months of 2023, the total coffee export volume reached 1.12 million tons, down 3.4% over the same period in 2022; the value reached 2.7 billion USD, up 3.7%.
Regarding the market, in the first 7 months of 2023, coffee exports to Germany, Spain, and Belgium decreased, but exports to Italy, the US, Japan, Russia, Algeria, the Netherlands, and Mexico increased compared to the same period last year.
Germany is the largest coffee importer from Vietnam with 137,446 tons, reaching 300.5 million USD, down 8% in volume and 5.5% in value respectively. Italy recorded an increase of 27.5% in volume and 29.2% in value, reaching 106,475 tons and 234.5 million USD. The US market followed with 86,546 tons, reaching 202.3 million USD, up 20.5% and 16.3%...
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