Market reversed at the end of the week, Vietnamese coffee prices continuously broke records

In the first half of 2023, Vietnam's coffee exports reached 1 million tons with a turnover of nearly 2.4 billion USD, down 3.1% in volume but up 2.3% in value over the same period last year. This is also the highest export turnover recorded by the coffee industry in the first 6 months of the year so far, according to data from the General Department of Customs.

World coffee prices turned up, robusta slightly adjusted, arabica increased strongly at the end of the week. The weak USD continued to support coffee prices. Meanwhile, low inventories, continuously decreasing sharply, supported a slight recovery in robusta coffee prices.

Domestic coffee prices, after 4 consecutive days of decline, recovered slightly this weekend.

The Brazilian Coffee Exporters Association's coffee export report shows that in June, the country's exports increased by 8.6% compared to the previous month, but decreased by 16.6% compared to the same period last year. Combined with the increase in the Real exchange rate, farmers reduced their export sales, supporting the market price increase.

Meanwhile, in the first 6 months of 2023, Vietnam exported 1.01 million tons of coffee worth 2.4 billion USD, down 2.2% in volume but up 3% in value compared to the same period last year. This is the highest coffee export turnover in the first 6 months of the year ever.

Giá cà phê hôm nay 23/7: (Nguồn: YouTube)

Domestic coffee prices today, July 15, increased by 300 VND/kg in some key purchasing localities. (Source: YouTube)

At the end of the weekend trading session (July 14), the price of robusta coffee on the ICE Futures Europe London exchange slightly reversed. The price of robusta coffee futures for September 2023 delivery increased by 15 USD, trading at 2,540 USD/ton. The price of November delivery increased by 5 USD, trading at 2,405 USD/ton. Trading volume was low.

The price of Arabica coffee on the ICE Futures US New York exchange for September 2023 delivery increased sharply by 3.2 cents, trading at 160.8 cents/lb. Meanwhile, the December 2023 delivery increased by 3.25 cents, trading at 160.30 cents/lb. The average trading volume is high.

Domestic coffee prices today, July 15, increased by 300 VND/kg in some key purchasing localities.

Average price	Change
USD/VND exchange rate	23,440	- 35
DAK LAK	65,400	+ 300
LAM DONG	64,900	+ 300
GIA LAI	65,200	+ 300
DAK NONG	65,600	+ 300

Unit: VND/kg.

(Source: Giacaphe.com)

Vietnam's coffee exports have grown quite positively in recent times as consumers tend to switch to consuming cheaper robusta coffee compared to Arabica coffee in the context of global economic downturn, inflation and interest rates remaining at high levels in most major economies.

Roasters are forced to respond to this trend and buy more robusta coffee to blend with arabica coffee to reduce the price of the coffee product to the lowest possible level to meet market demand.

Meanwhile, the International Coffee Organization (ICO) forecasts a global coffee supply deficit of 7.3 million bags in the 2022-2023 crop year. Robusta coffee output is expected to fall 2.1% in the current crop year to 72.7 million bags, while Arabica is expected to increase 4.6% to 98.6 million bags. This situation has pushed Vietnam's domestic and export coffee prices to record highs in recent months.

Source