Coffee exports jump to highest level in 2.5 years

In the derivatives market, according to the Vietnam Commodity Exchange MXV, at the end of the trading session on August 26, the price of Arabica coffee increased by 0.95% to 5,503.83 USD/ton, the highest level in two and a half years, continuing the upward trend from the end of last week.

Previously, according to the General Department of Customs, in the first half of August, Vietnam exported nearly 37,000 tons of coffee with a turnover of 195 million USD, down 7.5% in volume but up 67% in value compared to the same period in 2023. The average export price reached a record 5,293 USD/ton, up 81% over the same period in 2023.

Thanks to large supply and increasing quality, Vietnamese coffee prices are currently at very high levels. Photo: Nescafe

Accumulated from the beginning of 2024 to August 15, Vietnam exported over 1 million tons of coffee, reaching a turnover of 3.8 billion USD, down 12% in volume and up sharply 37% in value compared to the same period in 2023.

Concerns about dry weather in Brazil and a shrinking global coffee production surplus are the main reasons supporting prices.

In Brazil, dry conditions in the Southeast, Brazil’s main coffee growing region, are expected to last until mid-September. This could adversely affect flowering coffee trees for the 2025-2026 harvest, which could push supplies down.

In addition, many exporters and analysts in a Reuters survey said that coffee supplies are likely to tighten in the 2024-25 crop year, with production exceeding demand by only about 150,000 bags, down from an estimated surplus of 750,000 bags in the 2023-24 crop year. With the production surplus shrinking, respondents forecast Arabica coffee prices to rise to $5.90 per kg by the end of the year, up 10 cents from the closing price on August 26.

Robusta coffee prices are also hovering at record highs amid concerns about supply shortages in Vietnam. In the domestic market, this morning (August 27), the price of green coffee beans in the Central Highlands and the Southern provinces was around VND119,200 - 120,200/kg, up VND200 - 400/kg compared to last weekend.

According to a market research report on Vietnam's green coffee bean exports for the period 2024-2033, global green coffee bean prices, especially Robusta, have reached a 15-year high.

Notable coffee bean exporters in the Asia- Pacific region and globally include Brazil, Vietnam, Colombia and Ethiopia. Vietnam is a major supplier of Robusta coffee, holding a significant position in the global green coffee bean market.

In Vietnam, the coffee industry is an important agricultural sector, especially for the production and export of Robusta coffee. With favorable climate and soil conditions, Vietnam has become the second largest coffee producer in the world. Vietnam exports large volumes of green coffee beans, mainly to major coffee consuming countries such as the United States, Germany and Italy.

Source: https://congthuong.vn/xuat-khau-ca-phe-vot-len-muc-cao-nhat-trong-25-nam-gan-day-341688.html