Coffee prices drop rapidly, unsold goods occur, Vietnam still strictly implements EUDR

Among the coffee exporting countries in the world , it can be said that Vietnam is the leading country in implementing the European Union's Regulation on Deforestation and Forest Degradation (EUDR).

Coffee price today 10/30/2024

World coffee prices fell significantly on both robusta and arabica exchanges on the closing day of trading positions.

Domestic coffee prices today, October 30, range from 109,000 - 109,600 VND/kg. Since October 1, Vietnam has entered a new coffee crop, however, not only has it encountered a sharp price drop, but many growers, agents and manufacturers have also reported delays in delivery.

World coffee prices have quickly returned to a downward trend, after only two sessions of increase at the beginning of the week. The latest factors pushing the market back are the high and continuing strength of the US dollar. Concerns about supply have eased as storm No. 6 had a negligible impact on Vietnam's coffee growing areas. Meanwhile, typhoon Kong-rey changed course towards Taiwan (China).

In addition, some other factors are still directly affecting the market such as the Brazilian Real falling against the USD, encouraging Brazilian producers to increase sales, creating downward pressure on prices.

The European Union’s temporary suspension of the EUDR has had a strong and direct impact on coffee prices on the market. The EUDR has been extended for another year, causing all coffee supplies that were being “held back” or racing ahead of the implementation deadline to “release less strongly”.

Domestic coffee prices on October 29 increased by 1,500 - 1,600 VND/kg in some key purchasing localities. (Source: ohman.vn)

According to World & Vietnam , at the end of the trading session on October 30, the price of robusta coffee on the ICE Futures Europe London exchange turned down sharply, the delivery term for January 2025 decreased by 104 USD, trading at 4,398 USD/ton. The delivery term for March 2025 decreased by 98 USD, trading at 4,312 USD/ton. Trading volume was low.

Arabica coffee prices on the ICE Futures US New York exchange decreased, with the December 2024 delivery period decreasing by 4.25 cents, trading at 248.10 cents/lb. Meanwhile, the March 2025 delivery period decreased by 4.1 cents, trading at 247.25 cents/lb. Average trading volume.

Domestic coffee prices on October 29 increased by 1,500 - 1,600 VND/kg in some key purchasing localities. Unit: VND/kg

Average price	Medium
USD/VND exchange rate	25,164	0
DAK LAK	110,500	+ 1,500
LAM DONG	110,000	+ 1,500
GIA LAI	110,500	+ 1,500
DAK NONG	110,700	+ 1,600

(Source: giacaphe.com)

According to experts, the gloomy market phenomenon during the harvest season is due to many reasons, including the fact that coffee prices on the futures exchange fell too quickly (from October 1 to 25, they decreased by about 800 USD/ton). The rapid fall in coffee prices on the futures exchange has affected domestic coffee prices, so now no one can buy or sell anything on the market.

According to the Vietnam Coffee and Cocoa Association (Vicofa), Vietnam is the first country and is very active in implementing EUDR. In particular, the Government and the Ministry of Agriculture and Rural Development are very interested in and support the implementation of EUDR in industries related to this regulation, including coffee.

However, the EC’s proposal to postpone the implementation date of the EUDR has created a certain “shock” for Vietnamese coffee businesses. Because immediately after this proposal, the price of robusta coffee on the London floor fell sharply. Meanwhile, the cost that businesses have to pay to implement the EUDR is not small.

Therefore, when the export price of robusta coffee has decreased significantly because the implementation of EUDR may be postponed, many Vietnamese enterprises are wondering and worrying whether the contracts for selling coffee shipments that have met EUDR will be continued by the buyer or not? Vicofa representative said that in recent meetings, many leading European coffee traders commented that even if EUDR is postponed, this regulation will be implemented in the EU sooner or later. Therefore, they still accept to continue implementing the EUDR coffee purchase contracts signed with Vietnamese enterprises and request that Vietnamese enterprises continue to supply EUDR coffee for these contracts.

Therefore, Vicofa recommends that Vietnamese coffee enterprises continue to focus on implementing and implementing EUDR in the coming time, without interrupting this process. Environmental, green, and clean standards will become a trend in the coming time, so this is the way for the Vietnamese coffee industry to always be ready to immediately meet EUDR or any other new standards, at any time this regulation is officially applied.

Source: https://baoquocte.vn/gia-ca-phe-hom-nay-30102024-gia-ca-phe-giam-nhanh-chong-hien-tuong-e-hang-viet-nam-van-thuc-hien-nghiem-tuc-eudr-291858.html