This weekend, the coffee price surge seems to be returning, with world prices rising sharply by triple digits for three consecutive days. The market witnessed a spectacular price increase on the weekend, with gains of up to 5.3% on both the London and New York exchanges.
Coffee prices today, December 7, 2024
World coffee prices have been rising by triple digits in recent trading sessions this past week. In the days leading up to the sharp price drop, many investors increased their buying, pushing robusta prices back above the $5,000 mark.
Domestic coffee prices have increased by a total of more than 10,000 VND/kg in just the past two consecutive days. By the morning of December 7th, prices had risen by another 5,000 VND/kg, currently trading around 120,000 VND/kg.
This week, coffee prices fluctuated in opposite directions, with two unprecedentedly sharp declines – specifically, the January 2025 contract fell by $783; but this was followed by three consecutive days of sharp increases totaling $527. As a result, coffee prices still fell by $256/ton over the week. While robusta coffee prices on the London exchange continued to decline significantly throughout the week, arabica coffee not only recovered its losses but also increased by nearly $200 compared to the end of the previous week.
StoneX broker Tomas Araujo said market sentiment indicated increased buying activity, contributing to the price surge. Meanwhile, concerns about continued coffee supply shortages also helped push prices higher.
According to some businesses, coffee prices in the Central Highlands are rising faster than world prices because many businesses took advantage of the price drop earlier this week to buy in order to fulfill contracts. In addition, the global coffee market trend remains one of low supply and high consumer demand.
Currently, the harvest in many areas has not yet reached its peak, only about 30%, and farmers are not under economic pressure, so the recent price drop did not result in a panic selling. Heavy rains during the harvest caused concern among businesses regarding both delivery times and quality. Therefore, when the global market recovered, domestic prices rose sharply again. Industry insiders believe that Vietnam's late harvest continues to stimulate price increases. Farmers are not in a hurry to sell, so the limited supply is driving prices up.
According to the National Center for Hydro-Meteorological Forecasting, unseasonal rains are likely to occur over a wide area in the Central Highlands, with many places experiencing moderate to heavy rain, and localized areas experiencing very heavy rain. Besides the rising coffee prices, information about the rain is also something many coffee growers have been waiting for, as rainfall has decreased recently and the land has begun to dry out.
 |
| Domestic coffee prices on December 5th continued to rise sharply by 5,000 - 5,700 VND/kg in some key purchasing areas. (Source: Braziliancoffee) |
According to World & Vietnam , at the close of trading this weekend (December 6th), robusta coffee prices on the ICE Futures Europe London exchange continued to rise by triple digits. The January 2025 delivery contract increased by $258, trading at $5,153/ton. The March 2025 delivery contract increased by $243, trading at $5,116/ton. Average trading volume.
Arabica coffee prices on the ICE Futures US New York exchange also followed a strong upward trend, with the March 2025 contract rising 16.75 cents to trade at 330.25 cents/lb. Meanwhile, the May 2025 contract increased 16.30 cents to trade at 327.60 cents/lb. Trading volume was high.
Domestic coffee prices on December 5th continued to rise sharply by 5,000 - 5,700 VND/kg in some key purchasing areas. Unit: VND/kg
(Source: giacaphe.com) |
The Brazilian Coffee Exporters Association (Cecafe) reported preliminary export data for November, showing a 5.7% increase in coffee exports, totaling 4.42 million bags, including 3.72 million bags of arabica and 694,209 bags of robusta.
Brazilian farmers have already sold most of their last crop and seem in no hurry to bring the rest to market, based on domestic and international price trends.
High coffee prices have made many buyers cautious, and they are hoping prices will fall in the near future, so they haven't bought to stockpile yet.
According to data from the General Statistics Office of Vietnam, Vietnam's coffee exports in November decreased by 49.1% compared to the same period last year, reaching only 60,000 tons, and total exports from January to November decreased by 14.3% year-on-year, to 1.2 million tons. However, the export value of coffee in the first 11 months increased by 35.4% to a record high of 4.9 billion USD.
According to Reuters, trading activity in Vietnam is relatively quiet because large quantities of green coffee beans from the 2024-2025 crop have not yet been harvested. A trader in Vietnam's coffee belt said: “Prices on the London exchange are volatile, and both farmers and traders are currently very cautious in their trading decisions.” He added that, “large quantities of coffee beans may be harvested in the next 10-15 days. Currently, farmers have only harvested about 30% of the crop.”
According to experts, not only in Vietnam, but also globally, coffee prices have recently risen sharply due to several factors, including the impact of climate change and the El Niño phenomenon causing droughts across coffee-growing regions worldwide, leading to reduced supply. In addition, military conflicts around the world have also increased transportation costs and other expenses associated with exports.
Source: https://baoquocte.vn/gia-ca-phe-hom-nay-7122024-gia-ca-phe-bat-ngo-sot-tro-lai-ngay-cuoi-tuan-nhieu-nguyen-nhan-khien-thi-truong-tang-cao-296514.html
Comment (0)