Fluctuations in Vietnamese Coffee Prices During W30 Amid Projected 2024/25 Harvest Shortfalls

Vietnamese coffee prices have exhibited volatility in recent trading sessions, with a slight uptick observed on July 29, 2024, following a downturn the preceding day. This market instability is primarily due to projected 2024/25 harvest shortfalls. The Vietnam Coffee and Cocoa Association (VICOFA) anticipates a substantial decline of 15 to 20% in Robusta coffee output due to unfavorable weather patterns and pest infestations, potentially yielding a harvest between 21.4 and 22.7 million bags, considerably lower than prior estimates. The looming supply deficit is exerting upward pressure on prices, with domestic coffee trading around USD 4.8 to 4.9 per kilogram (kg) as of W30. Although recent price movements have been somewhat downward, the prevailing market sentiment suggests an upward trajectory as the market adapts to reduced production prospects.