Coffee prices plummet for two consecutive weeks, supply is abundant; partnership established between two coffee "powerhouses".

Vietnam is the world's second-largest coffee exporter with a wide variety of coffee beans, while Italy is the world's third-largest importer of coffee beans. The collaboration between a major raw material producer like Vietnam and a consumer market with advanced processing technology and marketing expertise like Italy will create double the added value for both sides.

Coffee prices today, October 14, 2024

World coffee prices fell sharply for the second consecutive week.

In summary, over the past week, the price of robusta coffee futures for November delivery decreased by $241/ton. The price of arabica coffee futures for December delivery decreased by 5.3 cents/lb. Last week, the price of robusta coffee futures for November delivery decreased by $415/ton. The price of arabica coffee futures for December delivery decreased by 11.8 cents/lb.

The main reason for the coffee price drop last week was the weakening of the Brazilian Real against the US dollar. The Real fell to its lowest level in a month last weekend (October 11th), prompting leading coffee growers worldwide to once again boost export sales. A SAFRAS survey showed that, as of October 9th, coffee growers' sales had reached approximately 62% of Brazil's 24/25 coffee crop, a 6% increase from the previous month.

Brazilian coffee exports continue to accelerate at the start of the new season. Data from Cecafé shows that in September, 4.12 million bags of green coffee were exported, including 3.19 million bags of arabica and 911,000 bags of robusta Conillon.

According to World & Vietnam , at the close of trading on Friday (October 11), robusta coffee prices on the ICE Futures Europe London exchange fell sharply. The November 2024 delivery contract decreased by $86, trading at $4,828 per ton. The January 2025 delivery contract decreased by $64, trading at $4,678 per ton. Trading volume was low.

Arabica coffee prices on the ICE Futures US New York exchange reversed course and fell, with the December 2024 contract declining by 2.70 cents to trade at 252.05 cents/lb. Meanwhile, the March 2025 contract fell by 2.7 cents to trade at 250.75 cents/lb. Average trading volume.

In fact, the price difference between robusta for November delivery and arabica for December delivery in the London and New York markets has narrowed significantly, indicating that robusta is gradually conquering the market with higher value.

Domestic coffee prices closed lower at the end of last week's trading session (October 12th), falling by 300-400 VND/kg in some key purchasing areas. (Source: doanhnhan.biz)

Domestic coffee prices last weekend (October 13th) traded in the range of 113,000 - 113,700 VND/kg, a decrease of an average of 2,500 - 3,000 VND/kg. Last week, domestic coffee prices also lost an average of 6,000 VND/kg. The market also has a more abundant supply with the new harvest (2024-2025) from Vietnam starting to enter the market from the Central Highlands provinces.

The Climate Prediction Center of the U.S. National Weather Service has revised its forecast downward, now predicting only a 60% chance of La Niña occurring later this year – compared to a previous forecast of a 74% chance of this extreme weather event. La Niña is a phenomenon that brings heavy rainfall to Pacific Rim countries, affecting coffee-growing regions in Vietnam, Colombia, Indonesia, and Peru.

Domestic coffee prices closed the trading session last weekend (October 12th) down 300-400 VND/kg in some key purchasing areas. Unit: VND/kg

Average price	Medium
USD/VND exchange rate	24,610	- 30
DAK LAK	113,600	- 400
LAM DONG	113,000	- 300
GIA LAI	113,600	- 400
DAK NONG	113,700	- 400

(Source: giacaphe.com)

The Vietnamese Embassy in Italy, in collaboration with Italian and Vietnamese partners, recently organized the Vietnam-Italy Coffee Industry Networking Forum, the main event within the framework of Vietnam-Italy Coffee Day, in Turin, northern Italy. This is a large-scale, important, and meaningful economic event, the first of its kind, aimed at connecting cooperation and establishing partnerships between the two coffee "powerhouses".

In his opening remarks at the Forum, Vietnamese Ambassador to Italy Duong Hai Hung emphasized that the Forum is a valuable opportunity for both sides to effectively exploit the potential, combine the strengths, and complementarity of the two countries' coffee industries, establish specific partnerships and cooperation in various stages of the supply chain such as production, processing, construction, franchising, joint ventures, investment, product distribution, machinery and equipment supply, exchange experiences, tastes and product trends, in order to jointly develop sustainably and meet the needs and interests of both sides.

According to Bach Thanh Tuan, Vice President of the Vietnam Coffee and Cocoa Association, this event marks the rise of Vietnamese coffee businesses as they gain access to Italy, a key European market. The cooperation between a major raw material producer like Vietnam and a consumer market with advanced processing technology and marketing expertise like Italy will create double the added value for both sides.

Opportunities for Italian businesses to cooperate with Vietnam are also considered very promising, as Vietnam is a large market in Southeast Asia as well as Asia. Vietnam can be a bridge for Italian businesses to export machinery, equipment, and Italian coffee products to markets such as Japan, China, South Korea, and Vietnam. Both sides should maintain this forum annually and exchange ideas, leveraging their strengths to create prosperity.

Coffee is a vital industry in Vietnam, with export value reaching US$4.18 billion in 2023, projected to reach US$5-6 billion this year, with an expanding global market. Meanwhile, coffee is an integral part of Italian culture. Beyond domestic consumption, Italy is a significant supplier of roasted coffee to other European countries. The Italian coffee processing industry generates US$3.6 billion in revenue. Italy's renowned coffee brands and industry have a significant influence and the ability to drive coffee trends worldwide.

Source: https://baoquocte.vn/gia-ca-phe-hom-nay-14102024-gia-ca-phe-truot-doc-hai-tuan-lien-tiep-nguon-cung-doi-dao-thiet-lap-quan-he-doi-tac-giua-hai-cuong-quoc-ca-phe-289986.html