Vietnam: Coffee market on November 29, current price fever is believed to be due to China's increased purchasing

Published Nov 29, 2024

Tridge summary

The price of robusta coffee futures for January 2025 on the London exchange increased by 0.6% to $5,565/ton, reaching a more than two-month high in early trading. The price increase is attributed to geopolitical factors, concerns about Brazil's output in the 2025/26 crop season, and transportation and logistics challenges. The market is in a long-term supply shortage, with high coffee prices compared to previous years. The coffee harvest season in Vietnam is slowing down, resulting in fewer new coffee beans purchased from farmers. Luckin Coffee has agreed to buy up to 240,000 tons of coffee per year from Brazil between 2025 and 2029, marking the largest coffee bean purchase plan in the company's history.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

In the world market, the price of robusta coffee futures for January 2025 on the London exchange increased by 0.6% to $5,565/ton, after reaching a more than two-month high of $5,613/ton in early trading. Highlights: - The New York floor was closed for the US Thanksgiving holiday. However, the previous strong increase - marking 7 consecutive sessions of increase in arabica prices, reaching the highest level in nearly half a century, has boosted robusta prices. - Rabobank analyst Carlos Mera commented that, in addition to geopolitical factors, the factors driving this price increase are quite complicated, including concerns about Brazil's output in the 2025/26 crop season, along with challenges in transportation and logistics. - Although prices are at very high levels and have increased sharply compared to the same period in many years, coffee prices have continued to increase. Currently, the prices of robusta and arabica coffee are very high compared to the average of many ...

Source: Vinanet