The coffee prices in the domestic market on September 17, 2024, have decreased slightly by 100-200 VND/kg to about 123,500-123,800. Currently, the average purchase price in the Central Highlands provinces is 123,800 VND/kg.
Hopes for a derease in interest rates by the Federal Reserve System (FED) have caused the dollar index to fall and pushed the commodity market to buy. It is expected that the agency will make a statement on the interest rate reduction in the meeting on September 19.
Coffee prices tend to go up in the long run.
According to experts, there is a lot of anticipation that the coffee prices will go up. About half a month ago, when the winter in Brazil was in its final stages, no one believed that robusta prices would rise above 5000 USD/ton. But now it happens.
Coffee production in 2024/25 in Vietnam, the world’s leading robusta exporter, is expected to fall sharply to the lowest level in the past 13 years. Meanwhile, the coffee consumer market in the Northern Hemisphere is gradually returning after the summer vacation, which will contribute to promoting some real coffee trading activities in the coming months before the winter roast in Europe and the US.
The world coffee prices will fluctuate sharply from now until the end of 2024 due to bad weather, transportation disruptions, as well as the tight regulatory environment in many countries. Tensions will ease in 2025, but prices in the long term tend to go up because of climate change and many other factors.
Long-term highs in the market, along with doubts about Brazil’s next coffee harvest, have slowed down sales. The lack of rain in Brazil in the past time has caused the humidity in the soil to be very low. It makes growers worry about the flowering process next year, amid the global coffee shortage.
Robusta coffee exports from Vietnam have decreased by 12.1% in the first 8 months of the year, which continues to put pressure on the price of this commodity. In Vietnam, currently, the coffee area cannot expand because it is fiercely competitive with other products such as durian or pepper. As a result, farmers in the Central Highlands promote recultivation to improve productivity.