The coffee industry in Vietnam witnessed a tumultuous trading session on the evening of September 23, as coffee prices on the ICE Futures Europe exchange in London, UK, surged across all futures contracts after a week of declines due to profit-taking by investors.
Compared to the previous week, the November Robusta coffee contract price rose to 5,276 USD/ton, an increase of 217 USD/ton. The January 2025 contract climbed to 5,003 USD/ton, up by 200 USD/ton, while the March 2025 contract reached 4,816 USD/ton, a gain of 202 USD/ton. Lastly, the May 2025 contract increased to 4,682 USD/ton, rising by 197 USD/ton.
Vietnam is the world’s second-largest coffee exporter and the leading exporter of Robusta coffee. Global coffee roasters and processors are increasingly reliant on Vietnamese Robusta due to its improved quality, increased usage in blends, and growing consumer preference.
On the New York exchange, Arabica coffee for November delivery rose to 5,810 USD/ton, a 5.14% increase from the previous day, with other contracts also witnessing gains of around 5%.
Robusta coffee rebounds
Experts attribute the rise in coffee prices to several factors, including declining Robusta coffee inventories on the exchange, escalating tensions in the Middle East, and forecasts of a coffee crop failure in Vietnam.
The main harvest season for coffee in the Central Highlands of Vietnam is currently underway, with peak harvest months expected to be October and November. The selling price of Robusta coffee at the start of the season is ranging from 115,000 to 120,000 VND/kg, slightly lower than before the harvest.
Some early-harvesting farms reported a 10-20% decrease in yield due to the impact of early-season drought conditions. However, thanks to the increase in coffee prices, profits are estimated to reach 200-250 million VND/ha.
According to data from the General Department of Customs, in the first eight months of 2024, Vietnam’s coffee exports reached 1.06 million tons, valued at 4.01 billion USD, a decrease of 12.1% in volume but an increase of 35.6% in value compared to the same period last year, thanks to the significant rise in export prices, with an average unit price of 3,783 USD/ton.
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