Vietnam's coffee export prices hit record high in 2022-2023 crop year

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According to the General Department of Customs, Vietnam's coffee exports in September fell to their lowest level in many years, with a volume of 50,967 tons, worth 168.7 million USD, down 48.2% in volume and 28.2% in value compared to the same period last year.

Thus, at the end of the 2022-2023 crop year (from October 2022 to September 2023), Vietnam's coffee exports reached 1.66 million tons (about more than 27.7 million bags, 60 kg/bag), down 4.5% compared to the 2021-2022 crop year. However, revenue still increased by 3.4% to a record 4.08 billion USD thanks to high prices.

In the 2022-2023 crop year, the average export price of Vietnamese coffee reached 2,451 USD/ton, up 8.2% compared to the previous crop year. In September alone, the export price of coffee increased for the 7th consecutive month, setting a new record of 3,310 USD/ton, up 8.4% compared to the previous month and up 36% (equivalent to 878 USD/ton) compared to the same period in 2022.

Giá xuất khẩu cà phê Việt Nam đạt mức kỷ lục trong niên vụ 2022-2023

Coffee export prices hit record high in September

In the world market, the Vietnam Commodity Exchange (MXV) said that at the end of the trading session on October 13, the sharp increase in crude oil prices supported the industrial raw material group in particular and the commodity market in general to prosper. In particular, Arabica prices increased by 3.75%, while Robusta prices closed 1.29% higher than the reference level.

In the report on October 13, the standard Arabica inventory on the ICE-US dropped sharply by 7,249 60-kg bags to 440,773 bags. This is the lowest level of coffee stored since early November 2022.

Coffee sales in Brazil are being constrained as suppliers say current prices are low and have fallen too far from the same period last year.

According to the weekly report of the Brazilian Government Crop Supply Agency (CONAB), Arabica prices in this country are at 800 Real/60kg bag, down about 30% compared to the same period last year. At the same time, Arabica prices on the ICE, although recovering in recent sessions, are still 25% lower than in October 2022.

In addition to market sentiment, the strengthening of the Real and the consecutive decline in the USD/Brazil Real exchange rate in the last 5 sessions have also contributed significantly to limiting farmers' demand for sales.

Regarding Robusta coffee, basic information on the market is quite optimistic with the export promotion of this product in Brazil and the positive prospect of the new coffee harvest in Vietnam.

In the context of the new crop coffee supply in Vietnam not being able to be pushed to the market abundantly, Brazil is still actively exporting available Robusta coffee to take advantage of good prices before additional supply from Vietnam. Besides, although export activities are still gloomy due to scarce supply, coffee harvesting in Vietnam is being supported by dry weather during the day. This helps the market expect positive supply in the coming time.

Mr. Duong Duc Quang - Deputy General Director of the Vietnam Commodity Exchange (MXV) said that if the coffee harvest in Vietnam continues to be favorable in the 2023-2024 crop season (starting in October), Robusta prices in general and Vietnamese coffee prices in particular will continue to decrease in the last months of the year. According to historical cycles, it is not until November that the amount of coffee exported from our country can clearly improve when the harvesting activities are concentrated and new supplies become available.

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