Continued sharp decline due to increased supply from Brazil

Experts predict that coffee prices on November 2, 2024 in the domestic market will tend to decrease slightly due to increased supply from Brazil thanks to favorable weather conditions.

Recorded in the trading session on November 1, 2024, domestic coffee prices today increased by 600 VND/kg, ranging from 108,800-109,200 VND/kg. Currently, the average purchase price in the Central Highlands provinces is 109,100 VND/kg, the highest purchase price in Dak Nong and Dak Lak provinces is 109,200 VND/kg.

Specifically, the coffee purchase price in Gia Lai province (Chu Prong) is 109,100 VND, an increase of 600 VND/kg compared to yesterday, in Pleiku and La Grai the same price is 109,000 VND/kg; In Kon Tum province, the price is 109,100 VND/kg, an increase of 600 VND/kg compared to yesterday; In Dak Nong province, coffee is purchased at the highest price of 109,200 VND/kg, an increase of 600 VND/kg compared to yesterday.

Coffee price forecast for November 2, 2024: Continue to decline sharply due to increased supply from Brazil

The price of green coffee beans (coffee beans, fresh coffee beans) in Lam Dong province in districts such as Bao Loc, Di Linh, Lam Ha, was purchased at 108,800 VND/kg, an increase of 600 VND/kg compared to yesterday.

Coffee prices today (November 1) in Dak Lak province; in which in Cu M'gar district, coffee is purchased at about 109,200 VND/kg, an increase of 600 VND/kg, while in Ea H'leo district and Buon Ho town, it is purchased at the same price of 109,100 VND/kg.

Updated world coffee prices at 20:00 on November 1, 2024, Vietnam time on the London exchange, the price of Robusta coffee futures contract for November 2024 delivery on the London exchange was at 4,490 USD/ton, down 79 USD compared to the beginning of the trading session.

Coffee price today November 1, 2024: Robusta coffee price on the London floor. (Photo: Screenshot giacaphe.com

The January 2025 delivery term is 4,222 USD/ton, down 59 USD; the March 2025 delivery term is 4,167 USD/ton, down 49 USD and the May 2025 delivery term is 4,092 USD/ton, down 53 USD.

Arabica coffee prices on the New York floor on November 1, 2024. (Photo: Screenshot of giacaphe.com)

In particular, the price of Arabica coffee on the New York floor today at 20:00 on November 1, 2024 decreased in all terms, fluctuating at 238.75 - 242.50 cents/lb.

Specifically, the December 2024 delivery period is 242.50 cents/lb; down 3.40 cents/lb compared to the beginning of the session. The March 2025 delivery period is 242.05 cents/lb, down 3.45 cents/lb; the May 2025 delivery period is 241.00 cents/lb, down 3.45 cents/lb and the July 2025 delivery period is 238.75 cents/lb, down 3.40 cents/lb.

Brazilian Arabica coffee price on November 1, 2024. (Photo: Screenshot of giacaphe.com)

The price of Brazilian Arabica coffee today at 9:00 p.m. on November 1, 2024 decreased. Specifically, the delivery period for December 2024 is 296.30 USD/ton, down 0.80%; the delivery period for March 2025 is 295.90 USD/ton, down 0.92%; the delivery period for May 2025 is 299.15 USD/ton, down 1.47% and the delivery period for July 2025 is 296.00 USD/ton, down 1.38%.

Robusta coffee traded on the ICE Futures Europe (London exchange) opens at 16:00 and closes at 00:30 (next day), Vietnam time.

Arabica coffee on the ICE Futures US floor (New York floor) opens at 16:15 and closes at 01:30 (next day), Vietnam time.

Coffee prices have been fluctuating continuously over the past few days, with increases and decreases alternating. One of the reasons is that recently, Brazil has increased its exports of Robusta coffee to take advantage of the high prices.

Brazil's coffee exports in the first two months of the 2024-2025 crop year (July and August) reached 451,000 tons, up nearly 12% and the turnover reached nearly 1.9 billion USD, up 39% over the same period last crop. Of which, Robusta coffee exports reached nearly 110,000 tons, up 53%; Arabica was 294,000 tons, up 2.5% and the rest was instant coffee, according to the International Coffee Organization (ICO).

Coffee supplies are gradually recovering after two consecutive years of record shortages. The International Coffee Organization (ICO) forecasts world coffee production in the 2023-2024 crop year to reach 10.68 million tons, up 5.8% from the previous crop year. Of which, Arabica coffee output will increase by 8.8% to 6.13 million tons; while Robusta coffee will increase by only 2.1% to 4.53 million tons. In contrast, coffee consumption in the 2023-2024 crop year will also increase by 2.2% to 10.6 million tons.

According to forecasts from industry experts and the Cocoa Coffee Association (Vicofa), in the current context both domestically and internationally, coffee prices will certainly continue to decrease in the short term. This is considered normal because when the market fluctuates, prices will decrease accordingly.

Currently, Vietnamese coffee has been exported to over 80 countries and territories. Of which, Europe accounts for about 48% of the market share, Asia 21%, and America 6%.

Information for reference only. Prices may vary by location.

Source: https://congthuong.vn/du-bao-gia-ca-phe-ngay-2112024-tiep-da-giam-manh-do-nguon-cung-tu-brazil-duoc-tang-cuong-356237.html