According to some businesses, the decrease in coffee prices is a technical factor in the market because in August, they continuously increased and reached a historical high, so investors started selling to take profits, causing the market to cool down.
Coffee price today 9/3/2024
World coffee prices, robusta, plummeted due to the absence of trading activities on the New York floor.
Domestic coffee prices tend to decrease compared to the previous day, currently trading in the range of 120,000 - 121,100 VND/kg.
In contrast to the sharp increase in pepper prices, coffee prices remained stable during the long National Day holiday on September 2. In recent weeks, although coffee prices on the two international exchanges have been increasing continuously, especially robusta in London, domestic coffee prices have not adjusted significantly, and at times even decreased, in contrast to world prices.
The New York Stock Exchange is closed for the first trading session of the week. Meanwhile, speculators are increasing their sell-off on the London Stock Exchange. The reason is that large hedge funds have bought many short contracts that have not been liquidated for a month. This is also a move to adjust the price gap between the two exchanges.
Meanwhile, the US dollar remained near its highest level in nearly two weeks, as investors focused on the US jobs report due later this week, pushing coffee lower at the start of the week.
News that extreme drought in Brazil may have shocked the trees, along with early flowering of coffee beans that has raised concerns about the country’s next crop, could be a factor in pulling the market higher when New York returns to trading today.
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| Domestic coffee prices at the end of August (August 31) increased by 300 - 500 VND/kg in some key purchasing localities. (Source: Kitco) |
According to World & Vietnam , at the end of the first trading session of the week (September 2), the price of robusta coffee on the ICE Futures Europe London floor plummeted, the delivery period in November 2024 decreased by 248 USD, trading at 4,700 USD/ton. The delivery period in January 2025 decreased by 240 USD, trading at 4,489 USD/ton. The average trading volume was low.
Arabica coffee prices on the ICE Futures US New York exchange remained unchanged, with December 2024 delivery down 3.55 cents, trading at 244.05 cents/lb. Meanwhile, March 2025 delivery down 3.10 cents, trading at 242.10 cents/lb. Trading volume was high on average.
Domestic coffee prices at the end of August (August 31) increased by 300 - 500 VND/kg in some key purchasing localities. Unit: VND/kg
(Source: giacaphe.com) |
At the beginning of September, coffee prices on both London and New York exchanges fell sharply. However, according to some businesses, this does not affect the general market trend in the medium and long term.
According to some businesses, the decline in coffee prices is a technical factor in the market because in August, it has continuously increased and reached a historical high, so investors are selling to take profits, causing the market to cool down. However, because the overall coffee supply is still lower than demand, in addition, the EU's determination to apply the EUDR anti-deforestation regulations at the beginning of next year has increased the current import demand. Therefore, the trend of coffee prices in the medium and long term will still increase and reach high levels.
According to Ricardo Dos Santos, senior director of coffee supplier Riccoffee (UK), European roasters are rushing to stockpile coffee in anticipation of a possible supply shortage in the first quarter of 2025. This has helped Robusta coffee increase sharply by nearly a thousand USD in August 2024.
Commenting on the market in September 2024, experts said that the impacts include: Weather in Brazilian coffee regions at the time when this crop needs water to bloom; importers increase the collection of goods to export to the EU before the new regulations of the union take effect from the beginning of 2025; the Fed and many banks consider lowering interest rates.
The European Union's anti-deforestation regulation officially came into effect on December 31, 2024. This means that only products that do not cause deforestation and are legal can be imported into the EU market. Of the 7 groups of goods banned from being imported into the EU if the production process causes deforestation, Vietnam has 3 groups of goods that are mainly affected, namely wood, rubber and coffee. Of which, coffee is most affected by the EUDR because it accounts for 55% of export turnover, about more than 1.1 billion USD.
However, Vietnam is one of the most active countries in complying with EUDR, so the market opportunities for Vietnamese coffee in the coming time are very large. In addition to the EU, the demand for coffee consumption in many Asian countries is also increasing strongly.
Source: https://baoquocte.vn/gia-ca-phe-hom-nay-392024-gia-ca-phe-robusta-boc-hoi-gan-250-usd-thoi-diem-chot-loi-du-bao-thi-truong-thang-9-284848.html
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