World coffee prices have slightly decreased across the market as supply is returning to positive levels due to increased exports from countries and the domestic coffee market is about to enter its crop season. The US dollar reached a 10-month high, causing other currencies to depreciate sharply. The domestic coffee market has turned negative compared to the same time yesterday.
Rainfall and less extreme weather are forecast for Brazil’s main coffee growing regions over the next 10 days, which should allow coffee plants to flower and grow in more favorable conditions than during the previous hot and dry period.
In the previous session, coffee prices adjusted up on the weekly closing day after both exchanges sold off heavily throughout the previous week, due to harvest pressure in Brazil and the Real exchange rate at a favorable level for farmers in this country to boost export sales.
Standard Arabica coffee inventories on the ICE-US Exchange closed on September 26 at 446,518 60-kg bags, up 5,665 bags from the previous weekend.
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| Domestic coffee prices today, September 28, decreased by 200 VND/kg in some key purchasing localities. (Source: Kitco) |
At the end of the trading session on September 27, coffee prices on international exchanges decreased slightly. Robusta coffee prices on the ICE Futures Europe London exchange for November 2023 delivery decreased by 9 USD, trading at 2,447 USD/ton. The January 2024 delivery period decreased by 6 USD, trading at 2,346 USD/ton. Average trading volume.
Arabica coffee prices on the ICE Futures US New York exchange for December 2023 delivery decreased by 1.6 cents, trading at 149.25 cents/lb. Meanwhile, the price for March 2024 delivery decreased by 1.55 cents, trading at 150.35 cents/lb. Trading volume increased.
Domestic coffee prices today, September 28, decreased by 200 VND/kg in some key purchasing localities.
Unit: VND/kg. (Source: Giacaphe.com) |
Coffee prices are still at their highest levels in many years. However, Vietnam’s reserves are currently very low. This has led to a decrease in coffee exports from August to October compared to the same period last year.
Accumulated from the beginning of the year to mid-September 2023, Vietnam's coffee exports reached 1.22 million tons, down 6.4% in volume but turnover reached 3.04 billion USD, up 2.3% over the same period last year.
Despite a sharp decrease in export volume, the average export price of coffee in the first half of September 2023 continued to increase, reaching 3,151 USD/ton, up 6.3% compared to the first half of August 2023, and up 32.1% over the same period last year.
By mid-September, Vietnam had its 6th consecutive month of increased coffee export prices, recording a record high of 3,054 USD/ton, up 8% compared to the previous month and up nearly 30% compared to the same period last year. If the average export price of coffee in our country in the first 8 months of the year reached 2,463 USD/ton, it also increased nearly 9% compared to the same period last year.
According to assessments, Vietnam's coffee supply is in a state of scarcity. In some key provinces in the Central Highlands, the amount of coffee stored by people and some businesses is very small due to crop failure leading to a scarcity of supply, mainly the amount of reserve goods for export for signed contracts.
This week, market attention will turn to inventory data from the Intercontinental Commodity Exchange (ICE). Both robusta and arabica inventories are improving and will be an important factor influencing price movements in the context of Brazil's increasing exports, experts said.
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