Coffee price today June 24: Robusta down nearly 2%

Coffee prices on the world market fell today (June 24). Specifically, robusta coffee prices decreased by 1.93% to $2,738 per ton.

World coffee price update

According to reports, coffee prices on the world market have decreased. Specifically, the online price of robusta coffee in London for July 2023 delivery was recorded at $2,738 per ton after a decrease of 1.93% (equivalent to $54).

Arabica coffee futures for July 2023 delivery in New York were at 164.85 US cents per pound, after falling 3.17% (equivalent to 5.4 US cents) at the time of this survey at 6:30 AM (Vietnam time).

Coffee prices have risen sharply this year, making it one of the best-performing agricultural commodities. Cash contracts are trading at $183, more than 30% higher than their year-lows.

In a statement, Australian weather forecasters predicted a 70% chance of El Niño occurring. If the forecasters are correct, many parts of the world will experience El Niño this year. This is a major catalyst that could push coffee prices significantly higher in the coming months.

In the past, El Niño has had a negative impact on the economy . In some places, record-breaking rainfall destroyed crops and caused droughts. When El Niño is accompanied by La Niña, other regions of the world experience record temperatures, leading to famine.

In a report this week, Fitch stated that El Nino will affect some of the world's largest coffee-producing countries, including Indonesia and Vietnam. Vietnam is the world's second-largest coffee producer, producing over 1.5 million tons annually. Indonesia is the fourth-largest producer.

This report indicates that: “The shift to El Nino conditions, now widely expected in the third quarter of this year, has raised concerns about reduced production in Vietnam and Indonesia, both major robusta coffee producers.”

Other major coffee-producing countries such as Brazil and Colombia would also be affected if this weather phenomenon occurs, according to Kalkine Media.

At the same time, coffee prices are rising due to the ongoing drought affecting some coffee-growing regions in Brazil, which sells millions of tons of coffee annually.

Meanwhile, a recent ICO report showed a decline in coffee exports in April. Exports from South America fell 6.4% while those from Africa decreased 9.8%. Exports from Asia and Oceania declined 1%, while exports from Mexico and Central America increased 1%. Overall, coffee production decreased 1.4% in the 2021-2022 crop year while consumption increased 4.2%.

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