The coffee price situation was updated on the morning of June 26, 2024, as follows:
Robusta coffee prices on the London floor have declined by 3,703 to 4,135 USD per ton.
Similarly, Arabica coffee prices on the New York floor have fallen this morning by 223.20 to 228.60 cents per lb.
The price of Brazil’s Arabica coffee fluctuates depending on the term.
Coffee prices in Vietnam have increased again.
Coffee prices in the domestic market have increased sharply by 3,000 VND/kg in the range of 123,000–124,400 VND/kg. Currently, the average purchase price in the Central Highlands provinces is 124,200 VND/kg.
Specifically, the price of coffee purchased in Gia Lai province (Chu Prong) is 124,200 VND; in Pleiku and La Grai, it is 124,100 VND/kg. In Kon Tum province, the price is 124,200 VND/kg. The highest price for coffee in Dak Nong province is 124,400 VND/kg.
In Lam Dong province, green coffee beans cost 123,000 VND/kg.
Currently, in key coffee-growing regions of Vietnam, drought and pests severely affect the yield of this crop. Production is forecast to decrease by 20% in the 2023–2024 season, to 1.47 million tons. This is the lowest level in 4 years, putting pressure on the supply of Robusta coffee in the world market.
The combination of drought, heat, and outbreaks of pests is expected to reduce the production of the next Robusta crop in Vietnam by 15% to 20%.
According to VICOFA’s estimates, Robusta coffee production for the 23/24 crop is about 26.7 million bags, and there will be a further decline for the 24/25 crop, with production from 21.40 to 22.70 million bags. This is even lower than VOLCAFE’s preliminary forecast of 24 million bags and the USDA’s estimate of 27.85 million bags.
The supply of Robusta coffee in the world market is under more pressure, affecting coffee prices and farmers’ income.
To minimize the impact, measures such as improving care techniques, using water-saving irrigation methods, and applying effective pest control methods should be implemented.
Despite the good harvest progress in Brazil, the supply of coffee remains below expectations due to the dry climate. Moreover, the indicators of Brazilian conillon production are disappointing and not as expected. Both high dollar prices and international prices have supported this result. Winter has officially arrived in Brazil, which is also a reason for the sellers’ caution.
Coffee prices are increasing despite the strong growth of global exports. According to ICO, the world exported 11% more coffee from October 2023 to April 2024, reaching a total of 80.99 million bags. Arabica coffee exports increased by nearly 13%, mainly from Brazil.