Coffee export prices increased to 3,200 USD/ton

On the first day of the week, April 1, the European market was closed for Easter. Robusta coffee prices on the ICE Futures Europe London exchange remained unchanged at the closing price of the last trading session in March, the delivery term in May 2024 decreased by 80 USD, trading at 3,479 USD/ton. The delivery term in July 2024 decreased by 71 USD, trading at 3,396 USD/ton. Average trading volume.

Arabica coffee prices on the ICE Futures US New York exchange increased sharply when trading alone, the May 2024 delivery futures increased by 2.9 cents, trading at 191.80 cents/lb. Meanwhile, the July 2024 delivery futures increased by 3.05 cents, trading at 191.10 cents/lb. The average trading volume is high.

News that recent heavy rains may have damaged coffee crops in Brazil has weighed on coffee prices this session. A report from the Somar Meteorologia agency on April 1 showed that the Minas Gerais region of Brazil received 75.4 mm of rain last week, equivalent to 335% of the historical average.

In the first quarter of 2024, Vietnam exported nearly 600,000 tons of coffee with a turnover of about 1.9 billion USD, an increase of only 3.1% in quantity but an increase of 54.7% in export turnover compared to the same period in 2023.

In the first quarter of 2024, Vietnam exported nearly 600,000 tons of coffee with a turnover of about 1.9 billion USD.

According to the Ministry of Agriculture and Rural Development , coffee is the second highest export commodity in the agricultural sector, behind only wood products and surpassing seafood. Currently, coffee prices have increased by 43.5% compared to the same period last year and reached an average of 3,181 USD/ton. The European Union (EU) continues to be Vietnam's largest coffee export market.

The average export price of coffee in the first quarter of 2024 reached 2,373 USD/ton, up 6.8%. However, according to Mr. Nguyen Nam Hai - Chairman of the Vietnam Coffee - Cocoa Association (VICOFA), in fact, since the beginning of the year, the average export price of coffee has been very high, up to 3,200 USD/ton.

The high export price has also pushed domestic coffee prices to their highest level in over 30 years at over VND92,000/kg, with the highest point at VND102,000/kg. This has more than doubled compared to the same period last year and increased by more than 30% compared to the end of 2023.

Domestic coffee prices have been rising steadily, reaching a record high of 100,000 VND/kg, more than double that of about a year ago. But according to experts, the sad thing is that although coffee prices have increased, very few farmers have benefited, while processing enterprises have encountered difficulties, because they usually buy raw materials as they produce, and farmers also rarely store coffee, most of which are sold after the harvest to pay for agricultural supplies.

Output in Vietnam, the world's main Robusta coffee grower, is forecast by the US Department of Agriculture (USDA) to reach 27.5 million bags in the 2023/24 crop year, much lower than the 31.3 million bags previously preliminarily forecast.

Observers reflect that by early 2024, domestic coffee prices increased by 60,000 VND/kg, so farmers were excited to sell almost everything, because at this time neither coffee growers nor domestic businesses had information to forecast prices. Meanwhile, many large French and Indian businesses in Vietnam had information to forecast the market, so they collected a large amount of coffee in Vietnam and now they have the ability to influence prices.

Years of low financial returns for Vietnamese growers have led to a decline in investment and crop switching. Furthermore, the dry climate and high temperatures of recent years have compounded production losses and reduced yields, resulting in tight supplies, as evidenced by the current low inventories.

Extreme temperatures and drought in Southeast Asia, home to the world’s second- and third-largest coffee bean producers, have led to lower harvests. The reduced supply not only affects consumers but also companies’ revenues,

Source: https://congthuong.vn/gia-ca-phe-xuat-khau-tang-cao-len-den-3200-usdtan-312270.html