The price of coffee has been continuously increasing since the beginning of the year, and compared to the same period last year, the price of coffee has doubled.
The peak was on March 8, 2024, the domestic price of coffee increased by an additional 1,700 dong, reaching the price range of 90,400 – 91,800 dong/kg, which is a record price level so far.
In the world, the price of coffee on the London and New York exchanges continued to rise on March 8. The price of Robusta coffee on the London exchange for May 2024 increased by an additional 72 USD, reaching 3,381 USD/ton. And the contract for July 2024 increased significantly by 57 USD, at the threshold of 3,271 USD/ton.
Meanwhile, on the New York exchange, the price of Arabica coffee for May 2024 increased by 5.9 cents, reaching 192.20 cents/lb. And the July 2024 contract also increased by 5.9 cents, at the threshold of 189.90 cents/lb.
Price of Arabica and Robusta on March 8, 2024
The price of coffee in the Central Highlands provinces on March 8 continued to increase shockingly, jumping by an additional 1,400 – 1,700 dong/kg, trading at an unprecedentedly high level, ranging from 90,400 – 91,800 dong/kg. Coffee in the domestic market of Vietnam is currently very difficult to purchase, and traders have to push the price up very high to be able to buy the goods.
Today (11/03), witnessing the opposing movements in the global market as the price of coffee traded decreased for both types of Robusta and Arabica. Meanwhile, the price of coffee in the domestic market still increased by 600 – 700 dong/kg.
Prior to that, the price of raw coffee had been continuously increasing due to concerns about the shortage of supply in coffee-growing countries around the world.
Coffee – illustration
Robusta coffee prices soared due to concerns about the decline in supply in Asia. Indonesia reported a 79.73% decrease in exports in January compared to the same period, bringing the total exports of the first 10 months of the current coffee crop (from April 2023 to March 2024) to only 1,935,960 bags, a decrease of 2,687,457 bags, or a 60.72% decrease compared to the same period of the previous crop.
In Vietnam, prolonged heat in key coffee-growing areas is causing concerns in the global market about the prospects of the new coffee crop supply.
Exporters are encountering difficulties in purchasing coffee in Vietnam, and some farmers are waiting for the price to increase while shipments to Europe have been delayed due to conflicts in the Red Sea, which partly limits the supply.
The General Statistics Office of Vietnam estimated that coffee exports in February only reached 160 thousand tons, a decrease of nearly 20% compared to the same period, due to the extended Lunar New Year holiday. The Vietnam Coffee-Cocoa Association (Vicofa) estimated that the current crop production for 2023/2024 decreased by an additional 10% compared to the previous crop.
While the price of coffee in the domestic market of Vietnam is currently very difficult to buy, traders have to push the price up very high, up by 220 – 280 USD/ton compared to the new futures price to be able to buy the goods.
Coffee beans
Many farmers in coffee-growing areas regret that they sold early and did not expect the price of coffee to increase so sharply. Mr. Hung (Buon Me Thuot, Dak Lak) said that now the price of coffee is high, so farmers will not sell if they do not need money because they hope the price will continue to increase.
Vnexpress newspaper quoted Mr. Do Ha Nam, Vice Chairman of the Vietnam Coffee-Cocoa Association (VICOFA), evaluating the level of coffee prices traded in the past week as “unprecedented”. According to him, the reason is the decrease in supply in the market. In Vietnam, Mr. Nam believes that the supply among the people is still over 30%, however, many bases are hoarding goods, causing prices to increase rapidly.
