Since the beginning of December, the coffee market has been continuously falling and then rising. Vicofa experts believe that Vietnamese farmers are playing an important role in maintaining high coffee prices thanks to their financial independence and ability to preserve coffee for a long time (storage for 1-2 years).
Coffee price today 12/8/2024
World coffee prices fluctuated strongly on both exchanges this week, plummeting at the beginning of the week and recovering in the last days. The fluctuations in each session were very large. The market increased sharply by 3 digits in consecutive days at the end of the week, as if the coffee price 'fever' was returning. However, on a weekly basis, robusta coffee prices decreased after a month of consecutive increases, while arabica coffee prices maintained good growth momentum.
At the end of the week, the price of Robusta coffee futures for delivery in January 2025 decreased by 256 USD/ton. The price of Arabica coffee futures for delivery in March continued to increase by 12.2 cents/lb. At the end of last week, the price of Robusta coffee futures for delivery in January 2025 increased by 424 USD/ton, the price of Arabica coffee futures for delivery in March increased by 18.45 cents/lb.
According to World & Vietnam , at the end of this weekend's trading session (December 6), the price of robusta coffee on the ICE Futures Europe London exchange continued to increase by 3 digits, the delivery term for January 2025 increased by 258 USD, trading at 5,153 USD/ton. The delivery term for March 2025 increased by 243 USD, trading at 5,116 USD/ton. Average trading volume.
Arabica coffee prices on the ICE Futures US New York exchange also increased sharply, with the March 2025 delivery term increasing by 16.75 cents, trading at 330.25 cents/lb. Meanwhile, the May 2025 delivery term increased by 16.30 cents, trading at 327.60 cents/lb. Trading volume was high.
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| Domestic coffee prices at the end of the week (December 7) continued to increase sharply by 3,500 - 4,000 VND/kg in some key purchasing localities. (Source: aivivu) |
After a sharp increase at the end of the week, domestic coffee prices are currently trading at 123,000 - 124,000 VND/kg, an unprecedented high in previous harvests. Compared to last week, domestic coffee prices have lost an average of 6,000 - 7,000 VND/kg, while the week before, they increased by an average of 11,000 VND/kg. Domestic coffee harvest has entered the main season, but farmers have not yet pushed sales.
Since the beginning of December, the coffee market has been continuously going down and then up again. Experts from the Vietnam Coffee and Cocoa Association (Vicofa) believe that Vietnamese farmers are playing an important role in maintaining high coffee prices thanks to their financial independence and ability to preserve coffee for a long time (can be stored for 1-2 years).
However, Vicofa warned that the price of Vietnamese robusta coffee is too high, causing importers to complain. In the short term, they still need Vietnamese robusta, because consumers are familiar with the taste. But if the high price persists, importers may change the formula, affecting exports. According to him, a price of about 100,000 VND/kg will harmonize the interests of all parties and help Vietnamese coffee develop sustainably. Because according to calculations, in reality, if coffee is sold at 100,000 VND/kg, minus costs, farmers still make a profit of up to 60,000 VND/kg. This is a fairly high profit for growers of this specialty crop.
Domestic coffee prices at the end of the week (December 7) continued to increase sharply by 3,500 - 4,000 VND/kg in some key purchasing localities. Unit: VND/kg
(Source: giacaphe.com) |
Vietnam's coffee export industry is making strong progress and is expected to reach a turnover of more than 5.5 billion USD by 2024, the highest level ever. This is a great achievement, affirming Vietnam's position in the world coffee market.
According to the Vicofa Association, the country has exported coffee to more than 80 countries, including 10 markets with a turnover of over 100 million USD. The European Union (EU) will remain Vietnam's largest coffee export market in the 2023-2024 crop year, with a value of up to 2 billion USD, up 41% compared to the previous crop year. The EU accounts for about 38% of Vietnam's coffee exports and 37% of turnover, showing the importance of this market to the Vietnamese coffee industry.
Vietnam is currently the world's largest producer of robusta coffee and the second largest exporter, after Brazil. The market share of Vietnamese coffee is increasingly recognized by the world.
However, the current sharp increase in coffee prices is mainly due to limited supply and high demand, especially when some major exporting countries such as Vietnam and Brazil are affected by drought.
The “coffee price fever” is also believed to have originated from the strong increase in purchasing in the Chinese market. Recently, Luckin Coffee, a large Chinese coffee company, signed an agreement with Brazilian suppliers to buy 240,000 tons of coffee per year from 2025 to 2029. This is the largest coffee bean purchasing plan in Luckin Coffee’s history, putting great pressure on global supply and pushing up coffee prices.
Rabobank analyst Carlos Mera said that in addition to geopolitical factors, the price increase was also influenced by concerns about Brazil's coffee production in the 2025/26 crop year and challenges related to transportation and logistics. These factors continue to reinforce the upward momentum of coffee prices globally.
Source: https://baoquocte.vn/gia-ca-phe-hom-nay-8122024-gia-ca-phe-robusta-van-giam-hon-250-usd-muc-gia-trong-nuoc-bi-canh-bao-qua-cao-can-tim-diem-hai-hoa-296547.html
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