Domestic coffee price highest at 61,100 VND/kg; Vietnamese goods face new regulations in Europe

Vietnam is the second largest coffee exporter in the world, after Brazil, but robusta coffee alone accounts for 50% of global exports. Therefore, when Vietnam's coffee production decreases, it will affect global supply, demand and coffee prices.

Global coffee prices were mixed ahead of the start of the new trading week, rising in London and falling in New York, amid heightened risk aversion and Wall Street investors speculating on the possibility of a dovish Fed meeting next week.

Yesterday, Monday, May 29, the London floor was closed for Springbank Holiday, the New York floor was closed for Memorial Day, closed all day, no trading.

Domestic coffee purchase prices are stable, the highest price recorded in Dak Nong is 61,100 VND/kg, the lowest in Lam Dong is 60,500 VND/kg.

Giá cà phê hôm nay 30/5/2023: Giá cà phê trong nước , nhu cầu tăng cao; hàng Việt đối mặt với quy định mới tại châu Âu- EUDR

Coffee price today March 20: dsjfbvs. (Source: ohman.vn)

At the end of the trading session last weekend (May 26) on the international floor, the price of robusta coffee on the ICE Futures Europe London floor turned to increase. The price of robusta coffee futures for delivery in July 2023 increased by 21 USD, trading at 2,574 USD/ton. The price of delivery in September increased by 20 USD, trading at 2,528 USD/ton. Trading volume was below average.

Arabica coffee prices on the ICE Futures US New York exchange continued to fall. The July 2023 delivery contract fell 1.1 cents, trading at 181.6 cents/lb. Meanwhile, the September 2023 delivery contract fell 1.1 cents, to 179.55 cents/lb. Trading volume increased sharply.

Robusta demand remains strong for the instant coffee industry and pressure from Brazil’s new arabica crop, which has just begun harvesting, continues to weigh on sentiment in the New York futures market, according to StoneX.

Domestic coffee prices today, May 30, remained stable in some key purchasing localities.

Average price	Change
USD/VND exchange rate	23,280	0
DAK LAK	61,000	0
LAM DONG	60,500	0
GIA LAI	60,800	0
DAK NONG	61,100	0

Unit: VND/kg.

(Source: Giacaphe.com)

According to the Vietnam Coffee and Cocoa Association (Vicofa), coffee output is forecast to decrease by 10-15% per year, however, this year it may decrease by 20% or more compared to the initial forecast due to increasingly severe climate change, combined with the El Nino phenomenon greatly affecting coffee productivity and output.

On the other hand, in recent years, prices have been so low that some coffee areas have switched to crops with higher economic efficiency, such as durian and passion fruit, and the number of intercropped plants on coffee areas has also increased. These are factors that have caused coffee output to decrease, pushing coffee prices up.

Vietnamese coffee is currently facing the new EU Regulation on Deforestation and Forest Degradation (EUDR). Meanwhile, Vietnamese coffee exports to Europe account for over or under 43%/year of the country's total coffee exports. Of this 43%, 39% is exported to 27 EU countries. If Vietnam does not comply with EUDR, it will be difficult to export commercial coffee to the EU market.

Analysts say that in order for Vietnamese coffee to not be entangled in EUDR, from now on, it is necessary for the active participation of relevant ministries, branches, localities and businesses to warn farmers about spontaneous coffee planting, especially localities must be able to trace the origin, besides, Vicofa is also actively implementing this issue.

Source