The coffee industry was abuzz on the evening of July 9th as Robusta coffee prices on the London market surged in the biggest gain ever.
The September delivery price averaged 4,634 USD/ton, a surge of 286 USD/ton. During the session, prices even soared to a record high of 4,667 USD/ton, a jump of 319 USD/ton compared to the previous trading session.
The November delivery price reached 4,464 USD/ton, an increase of 288 USD/ton from the previous session.
Thus, the Robusta coffee price on the London market officially broke the previous record set in May at 4,530 USD/ton.
Meanwhile, domestic coffee prices showed a slower increase. Specifically, prices on July 9th rose by 1,400 VND to 125,700 VND/kg, still lower than the record high in late April by about 9,000 VND/kg.
According to Mr. Nguyen Huu Long, Director of VCA Vietnam Coffee Academy Joint Stock Company (Gia Lai province), stable and increasing demand, coupled with a shortage in supply, are the main reasons for the skyrocketing coffee prices.
Robusta coffee prices surge to historic highs.
Regarding the domestic market, Mr. Long shared that since May, it has been challenging for domestic roasting facilities to purchase coffee due to limited supply. His company has been selling coffee beans at a price of 145,000 – 148,000 VND/kg for the past two months, but in limited quantities.
Mr. Long predicts that coffee prices will remain high for at least the next two crops due to the unchanged supply situation.
According to the Vietnam Coffee-Cocoa Association (VICOFA), in June 2024, Vietnam exported approximately 75,500 tons of coffee, earning 351.72 million USD, a decrease of 46.7% in volume and 7.4% in value compared to the previous month.
In the first six months of 2024, Vietnam exported more than 903,000 tons of coffee, with an export turnover of nearly 3.26 billion USD, a decrease of 10.5% in volume but an increase of 36.1% in value compared to the same period last year.
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Why is the global coffee price plummeting?
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