The export turnover of processed coffee has increased by nearly 22% in the first 07 months of this year to 448.7 million USD which is up compared to 15% in the same period last year.

According to statistics of the Mercantile Exchange of Vietnam (MXV), Arabica prices had a volatile trading session, closing down slightly 0.03% compared to the reference. The contrary between positive signals from inventories on the ICE-US Exchange and the sales demand of Brazilian farmers has created tension between buying and selling.

Coffee export prices increased to a record high.

Arabica inventory that meets the standard on the ICE-US Exchange has received 19,820 bags waiting for classification from Brazil. This helps increase the expectation that inventories will soon recover and contribute to ensuring the coffee supply in the market.

Meanwhile, Brazil’s domestic Real strengthened, leading to a 0.64% drop in the USD/Brazil Real exchange rate in yesterday’s session. The falling exchange rate difference has prompted Brazilian farmers to limit selling coffee because they earn less local currency.

In the opposite direction, Robusta prices increased strongly by more than 2% in yesterday’s session. Robusta exports in Brazil show signs of slowing down while supply remains scarce in Vietnam which has supported rising prices.

According to CECAFE, Brazil exported nearly 143,470 bags of granular Robusta in the first 11 days of August, lower than about 150,000 in the same period last month. Meanwhile, Vietnam’s coffee exports in August decreased by more than 25% compared to the same period last year.

Sharing the same world price trend, this morning, in the domestic market, the price of green coffee in the Central Highlands and Southern provinces simultaneously recorded strong increases from 600 – 800 VND/kg. Accordingly, the price of coffee in the domestic market reached 65,5000 – 66,500 VND/kg, the highest in the past week.

Regarding exports, according to data published by the General Department of Customs, Vietnam’s coffee exports in August fell to the lowest level since November last year with the volume reaching 84,647 tons, worth 258.5 million USD. This result was down 22.3% in volume and 16% in value compared to the previous month.

Accumulated in the first 08 months of the year, coffee exports reached 1.2 million tons, worth nearly 3 billion USD. Compared to the same period last year, the result decreased by 5.4% in volume but increased by 3.1% in value thanks to high selling prices.

The export turnover of processed coffee has increased by nearly 22% in the first 07 months of this year.

Thus, the total amount of coffee exported in the first 11 months of the 2022-2023 crop (from October 2022 to August 2023) reached more than 1.6 million tons, slightly down by 2% compared to the same period of the previous crop.

The production in the current crop was forecast to reach only about 1.5 – 1.6 million tons, down 10-15% compared to the 2021-2022 crop. The coffee supply for exports has almost run out and is expected to only improve from November until the supply from the new harvest 2023-2024 is brought into the market.

However, low inventories pushed coffee export prices in August to a new record of 3,054 USD per ton. This result was up by 8% compared to the previous month and 30% (nearly 700 USD per ton) over the same period last year.

Overall, in the first 08 months of the year, the average export price of coffee increased by nearly 9% to 2,463 USD/ton./.