Why are coffee prices increasing sharply, breaking records?

Coffee prices are forecast to increase slightly in the domestic market on September 27, 2024. In the next 3 months, farmers in the Central Highlands, including Dak Nong , will begin harvesting coffee. Due to fluctuations in coffee prices, businesses and cooperatives are worried about the lack of clean coffee supply. Businesses are concerned that the price difference between regular coffee and clean coffee may make it difficult to purchase and sell. Harvesting unripe coffee may reduce clean coffee output and affect the reputation of Vietnamese coffee in the long term.

According to the General Department of Customs, in the first 8 months of 2024, Vietnam exported 1.06 million tons of coffee, worth 4.01 billion USD, down 12.1% in volume but up 35.6% in value compared to the same period last year thanks to a sharp increase in export prices. In the first 8 months of 2024, the average export price of Vietnam's coffee reached 3,800 USD/ton, up 54.3% compared to the same period in 2023.

In August 2024 alone, the average export price of Vietnamese coffee reached 5,278 USD/ton, up 6.6% compared to July 2024 and up 72.9% compared to August 2023.

Domestic coffee prices were updated at 4:30 a.m. on September 26, 2024 as follows: Today's domestic coffee market increased by 1,200 VND/kg, ranging from 120,200 - 120,700. Currently, the average purchase price in the Central Highlands provinces is 120,500 VND/kg, the highest purchase price in Dak Nong, Dak Lak , Kon Tum, Gia Lai provinces is 120,700 VND/kg.

Specifically, the coffee purchase price in Gia Lai province (Chu Prong) is 120,700 VND, an increase of 1,200 VND/kg compared to yesterday, in Pleiku and La Grai the price is 120,600 VND/kg. In Kon Tum province, the price is 120,700 VND/kg, an increase of 1,200 VND/kg compared to yesterday; In Dak Nong province, coffee is purchased at 120,700 VND/kg, an increase of 1,200 VND/kg compared to yesterday.

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, coffee is purchased at 120,200 VND/kg, an increase of 1,200 VND/kg compared to yesterday.

Coffee prices today (September 26) in Dak Lak province; in Cu M'gar district, coffee is purchased at about 120,700 VND/kg, an increase of 1,200 VND/kg, and in Ea H'leo district, Buon Ho town, it is purchased at 120,600 VND/kg.

Updated world coffee prices at 9:00 p.m. on September 26, 2024, Vietnam time on the London exchange, the price of Robusta coffee futures contract for September 2024 delivery on the London exchange was at 5,565 USD/ton, up 119 USD compared to the beginning of the trading session.

Coffee price today September 26, 2024: Robusta coffee price on London floor. (Photo: Screenshot giacaphe.com

The November 2024 delivery term is 5,273 USD/ton, up 121 USD; the January 2025 delivery term is 5,044 USD/ton, up 108 USD and the March 2025 delivery term is 4,870 USD/ton, up 83 USD.

Coffee price today September 26, 2024: New York Arabica coffee price. (Photo: Screenshot giacaphe.com)

In particular, the price of Arabica coffee on the New York floor today at 9:00 p.m. on September 26, 2024 increased in all terms, fluctuating at 265.95 - 274.65 cents/lb.

Specifically, the December 2024 delivery period is 274.65 cents/lb; up 5.55 cents/lb compared to the beginning of the session. The March 2025 delivery period is 272.50 cents/lb, up 5.65 cents/lb; the May 2025 delivery period is 269.55 cents/lb, up 5.40 cents/lb and the July 2025 delivery period is 265.95 cents/lb, up 5.05 cents/lb.

Coffee price today September 26, 2024: Brazilian Arabica coffee price. (Photo: Screenshot giacaphe.com)

The price of Brazilian Arabica coffee today at 9:00 p.m. on September 26, 2024 increased. Specifically, the delivery period for December 2024 is 323.30 USD/ton, up 1.33%; the delivery period for March 2025 is 324.40 USD/ton, up 1.52%; the delivery period for May 2025 is 325.15 USD/ton, up 0.32% and the delivery period for July 2025 is 320.90 USD/ton, up 0.27%.

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.

Analysts said that global coffee prices have increased since the beginning of the week due to many factors that have strongly affected the market. In particular, concerns about adverse weather in major producing countries such as Brazil and Vietnam are putting pressure on supply, pushing prices up not only in the short term. Robobank has just said that the extremely dry situation in Brazil has not improved and forecasts another dry week before rain. Rainfall in Brazil has been consistently below average since April, causing significant damage to coffee trees during the important flowering stage, reducing the prospects of the country's 2025/26 arabica crop.

Brazil’s 2024/25 coffee harvest is complete and export shipments are being delivered to customers. But logistics bottlenecks in the top producing and exporting nation continue to contribute to increased demand in the spot market.

Concerns about congestion at Red Sea ports causing difficulties in transportation, along with a weak US dollar, are factors pushing up coffee prices.

*Information is for reference only, prices may vary depending on region and locality.

Source: https://congthuong.vn/du-bao-gia-ca-phe-279-vi-sao-gia-ca-phe-tang-manh-pha-vo-cac-ky-luc-348626.html