Robusta coffee price increased by 401 USD/ton, domestic price has increased strongly again, so Vietnamese coffee can maintain the "dream price"?

The average domestic coffee bean price of around VND110,000/kg has been a "dream" level for many years. However, a moderate price of around VND100,000/kg is to harmonize the interests of all parties so that Vietnamese coffee can stabilize the market and develop sustainably, according to Vicofa.

Coffee price today 11/18/2024

World coffee prices increased again last week. Robusta coffee prices had the second week of increase after 5 consecutive weeks of sharp decline. Arabica coffee prices were at a 13-year high, robusta at a 1-month high.

At the end of the week, the price of robusta coffee futures for delivery in January 2025 increased by 401 USD/ton. The price of arabica coffee futures for delivery in December increased by 28.45 cents/lb.

Domestic coffee prices have increased sharply again, by 6,000 VND/kg, currently fluctuating at 112,800 - 113,400 VND/kg, a total increase of 6,100 - 6,300 VND/kg in the past week.

According to World & Vietnam , at the end of the trading session last weekend (November 16), the price of robusta coffee on the ICE Futures Europe London exchange slightly adjusted in opposite directions, the delivery period in January 2025 decreased by 4 USD, trading at 4,773 USD/ton. The delivery period in March 2025 increased by 4 USD, trading at 4,669 USD/ton. Trading volume was low.

Arabica coffee prices on the ICE Futures US New York exchange continued to increase sharply, with the December 2024 delivery period increasing by 2.85 cents, trading at 281.80 cents/lb. Meanwhile, the March 2025 delivery period increased by 3.9 cents, trading at 283.30 cents/lb. Trading volume was high.

Last week, the price of robusta coffee futures for delivery in January 2025 increased by 97 USD/ton. The price of arabica coffee futures for delivery in December increased by 10.4 cents/lb. The price of domestic coffee increased by an average of 1,000 VND/kg.

After 4 consecutive days of increase with more than 400 USD/ton, robusta paused for a moment to allow the market to adjust.

As a result, prices for Arabica coffee hovered around their highest levels since mid-2011, reaching a 13-year high amid concerns about future supplies. Investors reassessed the outlook for next year’s crop in top coffee producer Brazil and grew increasingly concerned about the crop in Vietnam, the top robusta producer. Recent storms have delayed the Vietnamese harvest and rain remains a concern as traders expect the crop could shrink by as much as 10%.

Meanwhile, the market focus remains on the weather issue that will adversely affect next year's crop in the world's top producer, Brazil. Traders note that despite recent rains, soil moisture remains low, leading to limited fruit development and excessive leaf growth.

Traders have also been assessing the consequences of a one-year suspension of the European Union’s Deforestation Regulation, which could restrict coffee supplies from deforested countries that are key suppliers to the market.

Domestic coffee prices last weekend (November 16) decreased by 100 - 200 VND/kg in some key purchasing localities. (Source: Coffeeam)

Domestic coffee prices last weekend (November 16) decreased by 100 - 200 VND/kg in some key purchasing localities. Unit: VND/kg

Average price	Medium
USD/VND exchange rate	25,160	0
DAK LAK	113,200	- 200
LAM DONG	112,800	- 200
GIA LAI	113,100	- 100
DAK NONG	113,400	- 200

(Source: giacaphe.com)

Vietnam's robusta coffee is very popular thanks to its unique flavor, and is rated higher than products from countries such as Brazil, India, Indonesia, etc. Currently, Vietnam is almost "alone" in the world coffee market because other countries have not entered the harvest season. This gives Vietnam the opportunity to maintain good prices.

The Vietnam Coffee and Cocoa Association (Vicofa) said that robusta coffee accounts for 95% of the coffee growing area in Vietnam and is highly appreciated by international customers. Vietnam’s coffee harvest season lasts from early November to late December, a time when many countries do not harvest or harvest very little coffee.

Regarding the current coffee price, according to Vicofa experts - a special factor that few people talk about is the price regulation role of Vietnamese farmers. Specifically, at the present time, the coffee crop is in full swing but farmers have not sold much, the supply is not abundant so the price is kept high, because there is no financial pressure and coffee can be stored for 1-2 years.

The average price of green coffee beans that farmers are currently selling at around VND110,000/kg is a "dream" level for many years. But considering Vietnam's role as a leading coffee exporter, world importers can complain that the price of Vietnamese robusta coffee is currently too expensive.

In the short term, they still need Vietnamese coffee because consumers are used to the taste of Vietnamese coffee, but if Vietnamese coffee is too expensive for a long time, buyers will have to adjust the formula. When consumers get used to the new taste of coffee, coffee exports will be difficult. Therefore, a moderate price of around 100,000 VND/kg is to harmonize the interests of all parties so that Vietnamese coffee can stabilize the market and develop sustainably.

Source: https://baoquocte.vn/gia-ca-phe-hom-nay-18112024-gia-ca-phe-robusta-them-401-usdtan-trong-nuoc-da-tang-manh-tro-lai-de-ca-phe-viet-giu-muc-gia-mo-uoc-294125.html