| Coffee export prices continue to hit new highs due to supply concerns Coffee export prices suddenly turn to decrease |
Arabica coffee prices also hit an eight-month high with a 5.91% gain yesterday. A weaker US dollar boosted speculative buying, along with concerns about short-term supply shortages.
This is very good news for Vietnamese coffee because Robusta is the type of coffee that accounts for 75% of the total coffee volume in the country.
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| Coffee prices jump |
Brazil’s exports appear to have slowed in December. The Brazilian Coffee Exporters Association (CECAFE) said that the country shipped 1.68 million bags of Arabica beans in the first 18 days of December, down 20.4% from 2.11 million bags in the same period last month. The data reinforces experts’ predictions that Brazil may only boost coffee exports through November or December.
Furthermore, the decline in the Dollar Index also caused the USD/BRL exchange rate to lose 0.6% in yesterday's session. The exchange rate difference decreased, contributing to limiting coffee sales by Brazilian farmers due to less foreign currency earned.
In the closing report of December 18, Robusta inventories on the ICE-EU Exchange stood at 34,180 tons, gradually returning to the highest level in history at the end of August 2023, with 33,630 tons. Along with rumors that Vietnam is limiting coffee sales in the expectation of higher prices, it has caused concerns about short-term supply shortages in the market.
In the domestic market, recorded this morning (December 20), the price of green coffee beans in the Central Highlands and Southern provinces fluctuated between 67,700 - 68,400 VND/kg, a sharp increase compared to yesterday.
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| Vietnam coffee exports continue to benefit |
Vietnam's coffee exports are still benefiting and playing a leading role in market prices. According to Mr. Do Ha Nam - Vice President of the Vietnam Coffee - Cocoa Association, by 2024, Vietnam's coffee supply is expected to become the focus of the market. Therefore, Vietnamese businesses need to soon have a strategy to control prices. It is possible that early next year, coffee prices will remain high, helping farmers boost sales and Vietnam will fall into a state of local supply shortage like in the 2022/2023 crop year.
Good news also came continuously to the coffee industry when after 6 months of launching the new product, on December 13, 2023, coconut dream coffee was marked with its first success when BENTRE Coconut Trading and Production Company Limited (BENTRECORP) officially completed customs clearance procedures to bring the first shipment of "CT3 4IN1 coconut dream instant coffee" to the US market.
It is expected that on January 7, 2024, the shipment will arrive in Los Angeles, officially exporting the first product containing natural Saponin found in " Ben Tre coconut dream".
Along with exporting, the company has a strategy to promote and consume products in the domestic market step by step and systematically. Currently, the products are sold at fairs, tourist attractions, beverage businesses in the locality and some provinces and cities. In addition to the main product of CT3 4in1 coconut instant coffee, BENTRECORP is preparing to launch 3 new product lines including: Coconut cashew nuts, freeze-dried coffee and Origin pure roasted coffee.
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