| Soaring to a one-month high, Vietnam's coffee exports have a chance to increase. Soaring to a two-month high, Vietnam's coffee export prices have a chance to increase. |
According to the Vietnam Commodity Exchange (MXV), at the end of the trading week of October 16-22, Robusta prices increased by 8.54% and Arabica prices increased by 6.68% compared to the reference price. Last week, both coffee products recorded 5/5 green sessions, pushing current trading prices to a two-month high. Concerns about short-term supply in the two leading producing countries caused overwhelming buying power last week.
 |
| Coffee prices are high |
MXV said that coffee supply is still scarce in Vietnam as the old crop output is almost exhausted and the new crop is facing difficulties in harvesting. Trading in Vietnam is quite quiet because key coffee growing regions are experiencing continuous rain, causing weak supply to the market. This makes coffee exports to date still gloomy. According to the General Department of Customs, cumulative coffee exports up to October 15 decreased by 8% compared to the same period in 2022.
At the same time, difficulties in transporting coffee in Brazil have led to concerns about current export restrictions. Exporters in the South American country are complaining about a shortage of trucks and containers for transporting coffee. At the same time, widespread rains in the southern region have caused long waiting times for ships at the port of Santos, the main port for coffee shipments. These difficulties have delayed the time and volume of exports.
 |
| Coffee export prices remain high |
Coffee exports in the first 15 days of October reached only 17,838 tons, down 27% compared to the first half of September and down 55% compared to the same period in 2022. Although the export volume decreased sharply, according to the Vietnam Coffee - Cocoa Association, thanks to the increase in export prices, the export value of the coffee industry increased sharply.
In the first 9 months of 2023 alone, Vietnam's coffee exports reached 1.266 million tons, worth 3.16 billion USD, down 7.3% in volume but up 1.9% in value over the same period last year.
The Vietnam Coffee and Cocoa Association believes that the increase in coffee export prices will lead to an increase in domestic coffee prices. It is expected that the total coffee export volume in 2023 will reach about 1.72 million tons with a value of more than 4.2 billion USD, a new record in coffee exports in recent years.
In terms of market, Mexico is one of the countries that recorded a strong increase in both output and turnover. Specifically, in September, coffee exports to Mexico reached 3,051 tons with a value of more than 7.97 million USD, an increase of 85.7% in volume and a sharp increase of 141.2% in value compared to September 2022.
By the end of the third quarter, this North American market spent 77.46 million USD to import 32,558 tons of coffee, an increase of 48.6% in volume and 73.2% in value compared to the same period in 2022.
The average export price of coffee to Mexico was 2,379 USD/ton, up 16.6% over the same period in 2022. Thanks to the increase in export prices, export turnover to this market increased significantly.
Mexico is a large potential market that needs to be explored. With the world situation having many fluctuations, the COVID-19 pandemic... the increasing price of labor and goods from China, the trend of importing companies in the world, including Mexico, is to look for other suppliers, and Vietnam is one of them.
On the other hand, the CPTPP agreement has been in effect for 3 years, so many key Vietnamese products have many opportunities to penetrate the 11th most populous market in the world. Mexico has committed to eliminating 77% of tariff lines immediately, equivalent to 36.5% of import turnover from Vietnam, and will eliminate tariffs on 98% of tariff lines in the 10th year since the Agreement comes into effect.
In the domestic market, this morning (October 23), the price of green coffee beans in the Central Highlands and the Southern provinces continued to be adjusted up by 400 VND/kg compared to the end of last week. Accordingly, the domestic coffee price is currently being purchased at around 59,400 - 60,300 VND/kg.
Source link
Comment (0)