The European Union is a large coffee market, accounting for about 38% of Vietnam's total annual coffee exports. Among the top 10 markets importing the most coffee from Vietnam, there are 5 EU countries, according to the Import-Export Department, Ministry of Industry and Trade .
Coffee price today 11/19/2024
World coffee prices fell slightly in the first session of the week on both exchanges after a week of strong price increases, as rains in Brazil eased concerns about drought and stimulated profit-taking in the futures market.
Domestic coffee prices have been continuously raised during the harvest season, currently trading at VND113,100 - 113,700/kg early this week. This is a "dream" price for many years. In recent months, many European importers have focused on buying Vietnamese coffee as the deadline for implementing anti-deforestation regulations approaches. Thereby, pushing Vietnamese coffee prices to the highest level in the world.
But like that, coffee prices are still trading at high levels, still in an upward trend, alternating between decreasing sessions with increasing sessions, even though Vietnam's supply is in peak harvest season.
Coffee prices were also under pressure as the Intercontinental Exchange (ICE) said it would postpone planned changes to its coffee and cocoa contracts until the end of 2025, due to uncertainty over the European Union’s anti-deforestation regulations (EUDR).
The market’s focus remains on weather concerns that could hamper next year’s crop in the world’s top producer, Brazil. Traders note that despite recent rains, soil moisture remains low, leading to limited fruit development and excessive leaf growth. Forecasts of continued hot and dry conditions in Minas Gerais, Brazil’s main Arabica coffee growing region, have returned to provide further support to prices.
It is worth mentioning that in Vietnam, despite the high prices, purchasing is considered very difficult due to the psychology of expecting price increases at the end of the year, so coffee growers do not want to sell early. Many gardeners have just sold durian and pepper, so they have abundant financial resources, and even turn to buying coffee for storage as an investment. Therefore, although it is at the peak of the harvest season, the supply is not as abundant as in previous years. This contributes to the increase in coffee prices.
The push for arabica to a 13-year high and robusta to a one-month high last week was partly driven by the European Parliament’s vote to change deforestation regulations, according to analysts. If the EU fails to agree on changes to the regulations by next month’s deadline, the law will be implemented, potentially restricting coffee supplies from countries such as Brazil and Indonesia where deforestation is occurring. The EU Deforestation Regulation (EUDR) requires coffee importers to ensure that the products they bring into the EU have not been produced in deforested areas after 2020.
 |
| Domestic coffee prices on November 18 increased by 300 - 400 VND/kg in some key purchasing localities. (Source: Brandsvietnam) |
According to World & Vietnam , at the end of the first trading session of this week (November 19), the price of robusta coffee on the ICE Futures Europe London exchange slightly decreased, the delivery period in January 2025 decreased by 38 USD, trading at 4,735 USD/ton. The delivery period in March 2025 decreased by 24 USD, trading at 4,675 USD/ton. Trading volume was low.
Arabica coffee prices on the ICE Futures US New York exchange turned down, with the December 2024 delivery term down 1.05 cents, trading at 280.75 cents/lb. Meanwhile, the March 2025 delivery term down 1.10 cents, trading at 282.20 cents/lb. Average trading volume.
Domestic coffee prices on November 18 increased by 300 - 400 VND/kg in some key purchasing localities. Unit: VND/kg
(Source: giacaphe.com) |
At its session on 13-14 November 2024, the European Parliament (EC) voted to postpone the implementation of the EUDR by 371 votes, 240 votes against and 30 abstentions. The postponement period is 12 months. The European Parliament also adopted a number of other amendments related to the EUDR.
This means that large importers, exporters and traders trading with the EU market will have to comply with the Regulation from 30 December 2025, while micro and small businesses will have until 30 June 2026. This additional time will allow global operators to implement the Regulation smoothly from the start without compromising the objectives of the Regulation.
The EU is currently the world's largest coffee importer, accounting for about 33-35% of the global market share. Coffee consumption in this market is expected to reach nearly 48 billion USD in 2024 and will increase to over 58 billion USD in 2029. The European Union is also a large coffee market, accounting for about 38% of Vietnam's total annual coffee exports. Among the top 10 coffee importing markets of Vietnam, there are 5 EU countries, according to the Import-Export Department, Ministry of Industry and Trade.
Thus, the EUDR Regulation requiring agricultural products exported to this market not to be grown on deforested or degraded land is creating challenges. But looking at the issue from a positive perspective, this is also a new driving force for the strategy of developing the coffee industry in a sustainable way.
In the context of climate change, in many places, farmers have backward farming techniques, overuse of chemical fertilizers causing ecosystem degradation and coffee encroachment on forestry land still occurs. Therefore, the strict regulations of the EU are both a challenge and an opportunity for us to make greater efforts in transparency from production to consumption, the first key of which is to raise awareness for farmers from the production stage.
European consumers in particular, and the world in general, are increasingly interested in safe agricultural products. Therefore, the EU anti-deforestation law can be a lever to promote the coffee industry to develop in the direction of improving quality while protecting the environment.
Source: https://baoquocte.vn/gia-ca-phe-hom-nay-19112024-gia-ca-phe-dang-o-muc-cao-hang-viet-dang-cao-nhat-the-gioi-coi-eudr-la-mot-co-hoi-294223.html
Comment (0)