Global coffee prices rose to a record high this week and are up about 80% this year as adverse weather in Brazil and Vietnam - the world's top coffee growers - has hit production prospects.
Coffee price today 12/12/2024
World coffee prices have rebounded on the exchanges after a sharp decline. Robusta coffee prices are back near the $5,200/ton mark and Arabica prices are at 321.25 US cents/lb.
Domestic coffee prices have increased, currently trading at around VND122,000 - 123,700/kg. The high coffee prices during the harvest season have helped farmers cover their costs and earn much better profits than in previous years.
Weather conditions are currently not in favor of the harvest in the Vietnamese supply region. Unseasonal rains have returned to the top robusta producer, potentially disrupting the harvest further and raising fresh quality concerns.
Arabica coffee prices stabilized and rose slightly but remained well off the record highs reached this week as traders assessed more optimistic supply forecasts from Brazil. Contrary to Volcafe ’s recent cut of its forecast for Brazil’s upcoming arabica crop to 34.4 million bags (down 11 million bags), another major trading house, Neumann Kaffee Gruppe, forecasts a 40 million bag harvest, highlighting a wide divergence in market estimates.
Coffee experts believe that the unusual fluctuations in coffee prices on international coffee futures exchanges due to hedge funds pushing up prices do not reflect the true coffee market. In the coming time, coffee prices are expected to adjust and level off, not skyrocket again.
According to World & Vietnam , at the end of the trading session on December 12, the price of robusta coffee on the ICE Futures Europe London exchange increased, the delivery term for January 2025 increased by 33 USD, trading at 5,194 USD/ton. The delivery term for March 2025 increased by 51 USD, trading at 5,151 USD/ton. Trading volume was low.
Arabica coffee prices on the ICE Futures US New York exchange increased, with the March 2025 delivery term up 1.05 cents, trading at 321.25 cents/lb. Meanwhile, the May 2025 delivery term increased 1.20 cents, trading at 319.0 cents/lb. Trading volume was high.
Domestic coffee prices on December 12 decreased by 1,700 - 2,000 VND/kg in some key purchasing localities. Unit: VND/kg
(Source: giacaphe.com) |
The 'coffee capital' of Dak Lak has achieved a record export turnover of the local coffee industry. Coffee is the main crop of Dak Lak province. The whole province currently has more than 212,000 hectares, with an estimated output of over 500,000 tons in 2024. High coffee prices have made Dak Lak farmers happy and excited about this year's harvest.
According to the report of the Dak Lak Provincial People's Committee, in 2024, the amount of coffee exported reached 264,404 tons, down 40,000 tons compared to the previous year. However, thanks to the sharp increase in coffee prices, the export turnover reached 916 million USD, an increase of 156 million USD compared to the previous year, this is the year with the highest export turnover ever.
Dak Lak province aims to maintain a stable area of 170,000-180,000 hectares by 2030 and an average output of 476,000-504,000 tons; replanting an average of 6,000 hectares of coffee each year with good, high-yielding varieties to ensure output maintenance. In addition, the locality is increasing the development of internationally certified areas to meet market demands. With the current positive coffee price trend, the province's coffee export turnover could exceed 1 billion USD by 2025.
Currently, along with implementing measures to ensure safety during the coffee harvest season and limit theft, localities are also actively promoting, mobilizing, and guiding farmers on effective coffee harvesting solutions to ensure quality.
Source: https://baoquocte.vn/gia-ca-phe-hom-nay-13122024-gia-ca-phe-xanh-tro-lai-kha-nang-tang-vot-kho-xay-ra-thu-phu-ca-phe-dak-lak-dat-muc-tieu-ti-usd-297214.html
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