Compared to the peak price set on 26 April on the London floor at $4,304/ton, the closing Robusta coffee price this week on 3 May has evaporated to $ 763/ton, at $ 3,541/ton for the same maturity.Â
For the domestic market, after a long holiday, coffee prices have “fallen freely” when continuously dropping the milestones of 130,000 VND/kg, 110,000 VND/kg.
Updated on the morning of May 5, coffee prices in the Central Highlands recorded an average of only VND 102,800/kg, down by more than VND 31,000/kg compared to the peak price from the 26th to the 30th of April.
Mr. Nguyen Quang Binh, an expert in the coffee market, said that coffee prices “are falling terribly” when official statistics show that coffee output is not as seriously deficit as feared.
Coffee prices are falling sharply as supply improves
In Vietnam, figures from the Ministry of Agriculture and Rural Development show that coffee exports increased in the first 4 months of 2024.
Specifically, Vietnam exported 756,000 tons of coffee, earning $2.57 billion, up 5.4% in volume and 57.9% in value over the same period in 2023.
Meanwhile, in Brazil, the harvest output remains high, not failing as initially feared.
In addition, inventories are meeting standards on the floor are increasing rapidly, Arabica coffee is the highest in the past year; while Robusta coffee, inventory is almost equal to the number at the beginning of the 2023-2024 crop year, which is the time of October 2023.
A sharp decline in coffee prices is also due to the fact that the International Coffee Organization (ICO) has just released a report showing that global coffee exports in March 2024 increased by 8.1% over the same period last year. Accumulated in the first 6 months of the 2023-2024 coffee crop, coffee exports increased by 10.4%.
This shows that the world’s coffee supply is not as deficient as some previous forecasts.
In April, Robusta coffee prices hit a record high, the highest in 45 years.
The main impetus for the Robusta rise in March was Brazil, which exported 0.85 million bags compared to 0.11 million bags in March 2023, an increase of 686.1%.
