Coffee prices are soaring amid the risk of supply shortages.

VTV.vn - Both coffee prices continue to rise sharply due to increasing supply pressure from Vietnam and Brazil, raising market concerns about potential shortages in the coming months.

According to MXV, on November 20th, Arabica coffee prices edged up nearly 0.5% to $8,961 per ton, while Robusta coffee prices surged more than 2.5% to $4,631 per ton. MXV's assessment indicates that concerns about coffee supply in producing countries like Vietnam and Brazil persist, thus driving the price increases for both commodities.

The Central Highlands – the Robusta coffee growing capital of Vietnam and the world – is experiencing extreme weather conditions with prolonged heavy rains. Flooding, landslides, and inundation have caused significant damage to local people and severely affected large areas of coffee plantations. Many coffee trees have been uprooted and cannot be harvested, potentially leading to a sharp decline in Vietnam's coffee supply and the global market in the coming months.

Not only is Vietnam affected, but the Brazilian coffee market is also facing many difficulties. According to the Brazilian Coffee Exporters Association (Cecafe), the amount of coffee with certificates of origin currently stands at only 2.1 million bags, much lower than forecast. This has led to a further sharp decline in export forecasts for the month, possibly even lower than the 4.1 million bags of the previous month, creating further pressure to tighten supply in the global market.

Furthermore, coffee inventories on the ICE exchange have been continuously decreasing, contributing to supporting coffee prices. US tariffs on coffee imported from Brazil continue to push inventories on the ICE exchange lower. Arabica inventories managed by ICE fell to their lowest level in 1.75 years, reaching nearly 400,000 bags yesterday. Meanwhile, Robusta inventories on ICE also decreased sharply, reaching their lowest level in four months at 5,640 lots.

In the domestic market, coffee prices today (November 21st) fluctuated between 114,500 and 115,500 VND/kg. In key growing areas of Lam Dong province such as Di Linh, Lam Ha, and Bao Loc, the purchase price remained stable at 114,500 VND/kg. In Cu M'gar ( Dak Lak ), the price was 115,500 VND/kg, while in Ea H'leo and Buon Ho, it hovered around 115,400 VND/kg.

Source: https://vtv.vn/gia-ca-phe-leo-thang-truc-nguy-co-thieu-hut-nguon-cung-100251121160110755.htm