Coffee prices increased sharply since the beginning of the week, domestic prices doubled, waiting for the decision from the EU

Coffee growing areas have been reduced due to low coffee prices in previous years, affecting people's incomes, forcing them to switch to other crops with higher economic value. In the short term, increasing coffee growing areas and production in the coming time will be very difficult, according to the Vietnam Coffee and Cocoa Association (Vicofa).

Coffee price today 11/13/2024

World coffee prices continued to increase well at the opening session of the week, especially Arabica coffee increased very strongly, even though the currency factor is not favorable for exports.

Domestic coffee prices increased sharply at the beginning of this week, currently trading at around VND109,700 - 109,900/kg. Slow exports from Vietnam have tightened the world coffee market, supporting price increases. Compared to the same period last year, coffee prices are now nearly double from VND60,200 - 61,000/kg. Since the beginning of the year, coffee prices have increased by more than VND40,000/kg compared to VND67,500 - 68,400/kg.

Coffee prices have been on a roll since the start of the week as the US dollar remains high. In the absence of fresh fundamental news, the market continues to receive support from weather concerns in Brazil and Vietnam. Recent weather conditions in the world’s two leading suppliers have raised concerns about the upcoming harvest in both countries.

Vietnam is entering the main coffee harvest of the 2024-2025 crop year. There are concerns that the impact of La Nina will cause rain, disrupt the harvest progress, and even reduce coffee production.

The main reason is that Vietnam's low export figures in recent months have caused concern in the market. Vietnam's export figures in October 2024 decreased to only 44,000 tons of coffee. In the first 10 months of the year, Vietnam's supply was only able to bring 1.15 million tons to the world market, down 11.2% compared to the same period. Meanwhile, there have been continuous reports of storms in the East Sea with continuous rains targeting Vietnam's key coffee harvesting areas, creating the threat of supply disruption.

Longer term, concerns are that unusually dry conditions in Brazil could limit the country’s coffee production. Brazil is at risk of running out of water for its 2025-2026 coffee crop. After a brief midweek rain in Minas Gerais, Brazil’s largest arabica-growing state, the region is set to get hotter and drier over the next 10 days, according to meteorologist Climatempo.

However, in the context of uncertain coffee supply prospects for the next crop, Brazil has still boosted coffee exports in recent months. The Brazilian Coffee Exporters Association (CECAFE) announced that in October, the country exported 4.93 million bags of coffee of all kinds, up 11.5% compared to the same period in 2023.

Domestic coffee prices today, November 12, increased sharply by 2,700 - 2,800 VND/kg in some key purchasing localities.

According to World & Vietnam , at the end of the trading session on November 12, the price of robusta coffee on the ICE Futures Europe London continued to increase, the delivery term for January 2025 increased by 61 USD, trading at 4,537 USD/ton. The delivery term for March 2025 increased by 49 USD, trading at 4,461 USD/ton. Trading volume was low.

Arabica coffee prices on the ICE Futures US New York exchange increased sharply, with the December 2024 delivery term increasing by 7.35 cents, trading at 263.55 cents/lb. Meanwhile, the March 2025 delivery term increased by 7.25 cents, trading at 263.10 cents/lb. Trading volume was high.

Domestic coffee prices today, November 12, increased sharply by 2,700 - 2,800 VND/kg in some key purchasing localities. Unit: VND/kg

Average price	Medium
USD/VND exchange rate	250.90	+ 40
DAK LAK	109,700	+ 2,700
LAM DONG	109,800	+ 2,800
GIA LAI	109,700	+ 2,700
DAK NONG	109,900	+ 2,700

(Source: giacaphe.com)

Today (November 13), the European Parliament (EU) will begin a two-day meeting (November 13-14) to vote on whether or not to delay the implementation of the European Deforestation Regulation (EUDR). Ahead of this important moment, coffee prices continue to rise. This is considered an important factor that can strongly impact coffee prices next week.

According to the original plan, the EUDR would be applied from December 30, 2024 to products including coffee, cocoa, livestock, timber, palm oil, soybeans and rubber. However, in recent times, this regulation has faced opposition from many businesses as well as countries supplying imported products to Europe, and called for a delay in applying the regulation to have more time to prepare.

Last month, the European Council agreed to a proposal to delay the application of the EUDR by 12 months, with it coming into force on 30 December 2025. However, to officially come into force, it needs final approval from the EU.

The EU is currently the world's largest coffee consumer market, importing 3.2 million tons, equivalent to 31.2% of the total global coffee trade. Four European Union countries, Germany, Italy, Spain and the Netherlands, are among the top 10 coffee importers of Vietnam in 2024.

Source: https://baoquocte.vn/gia-ca-phe-hom-nay-13112024-gia-ca-phe-tang-manh-tu-dau-tuan-gia-trong-nuoc-cao-gap-doi-thoi-diem-cho-phan-quyet-tu-eu-293551.html