Global coffee production for the current 2023/24 coffee year is expected to reach around 170 million bags, with global consumer demand continuing to grow by an average of 2% per year and leading producing countries such as Brazil and Vietnam having made great strides in recent times to increase production and productivity.
Coffee price today 7/19/2024
World coffee prices fell sharply due to the influence of technical factors more than the impact of fundamental information.
Domestic coffee prices remained almost unchanged during the trading session on July 18, except for a decrease of VND100/kg in Dak Lak , currently trading in the range of VND127,000 - VND127,600, depending on the locality.
There is not much to discuss in the market at this time, the concern about the market's supply in the medium term is always looming, although there is some information from India that their robusta coffee continues to stay in the high range thanks to the problem of tight supply in Vietnam and Indonesia.
Exporters say demand from European buyers is picking up ahead of the EUDR anti-deforestation provisions coming into force. New EU deforestation rules recently introduced could mean thousands of tonnes of coffee exports to the EU could soon be rejected because they were produced on recently deforested land.
Coffee inventories have been falling for several years, so Brazil needs a bumper crop this year to meet domestic demand and export to other markets. There are concerns that output in the world’s top arabica grower will continue to weaken this year, adding to the global supply strain.
In addition, major Brazilian ports continue to report limited container and vessel capacity, as well as changes in shipping routes that have led to delays in deliveries. This has added to the cost of goods, causing coffee to rise sharply in recent times.
However, experts believe that coffee prices in both markets will have a short or medium-term downward adjustment in the near future due to the lack of factors to promote or keep prices in a high range, especially when the winter in Brazil is warm and the weather is favorable for coffee.
Certified graded Arabica coffee stocks held on the New York market fell by 1,620 bags yesterday, bringing the total to 801,547 bags. Certified Robusta stocks on the London market are said to have increased by 18,667 bags in the week to July 15, bringing the total to 1,016,333 bags, of which Brazilian Robusta/Conilon accounts for more than 90%.
 |
| Domestic coffee prices on July 18 were relatively stable compared to the previous day. (Source: Kitco) |
According to the World & Vietnam, at the end of the trading session on July 18, the price of robusta coffee on the ICE Futures Europe London exchange decreased sharply, the delivery period in September 2024 decreased by 91 USD, trading at 4,479 USD/ton. The delivery period in November 2024 decreased by 83 USD, trading at 4,317 USD/ton. Trading volume was low.
Arabica coffee prices on the ICE Futures US New York exchange continued to fall, with the September 2024 delivery term down 2.25 cents, trading at 240.90 cents/lb. Meanwhile, the December 2024 delivery term down 2.10 cents, trading at 239.35 cents/lb. Trading volume was high on average.
Domestic coffee prices on July 18 were relatively stable compared to the previous day. Unit: VND/kg
(Source: giacaphe.com |
Vietnam's robusta coffee output has recorded a 300% growth, from 7 million bags in 1999 to 28 million bags in the 2023/24 coffee crop year.
Similar growth and productivity gains have occurred in Brazil, with the expansion of Conilon robusta production, increasing total output by 365% from a modest 5 million bags in 1999/2000 to around 23.50 million bags in the current coffee year.
Robusta coffee production has also seen a similar increase in market share over the same period, up to 106%, mainly led by countries producing this type of coffee. Vietnam’s robusta coffee production has recorded a growth of 300%, from 7 million bags in 1999 to 28 million bags in the 2023/24 coffee crop year. Similar developments and productivity gains have occurred in Brazil, with the expansion of Robusta Conilon coffee production, increasing total production by 365% from a modest 5 million bags in 1999/2000 to around 23.50 million bags in the current coffee crop year.
Current market information, the shortage of Arabica coffee due to climate change will also push up demand for Robusta coffee as roasters will need to diversify their products. According to calculations, by the end of the first 9 months of the 2023/24 crop year (from October 2023 to June 2024), Vietnam has exported nearly 1.26 million tons of coffee, reaching about 86% of the total output of 1.47 million tons of the current crop year and down more than 11% compared to the same period last crop year.
![[Photo] General Secretary To Lam works with the Central Policy and Strategy Committee](https://vphoto.vietnam.vn/thumb/1200x675/vietnam/resource/IMAGE/2025/5/28/7b31a656d8a148d4b7e7ca66463a6894)
![[Photo] Vietnamese and Hungarian leaders attend the opening of the exhibition by photographer Bozoky Dezso](https://vphoto.vietnam.vn/thumb/1200x675/vietnam/resource/IMAGE/2025/5/28/b478be84f13042aebc74e077c4756e4b)
![[Photo] Prime Minister Pham Minh Chinh receives a bipartisan delegation of US House of Representatives](https://vphoto.vietnam.vn/thumb/1200x675/vietnam/resource/IMAGE/2025/5/28/468e61546b664d3f98dc75f6a3c2c880)
![[Photo] 12th grade students say goodbye at the closing ceremony, preparing to embark on a new journey](https://vphoto.vietnam.vn/thumb/1200x675/vietnam/resource/IMAGE/2025/5/28/42ac3d300d214e7b8db4a03feeed3f6a)
Comment (0)