Global coffee news on October 23: Robusta prices are at a two-month low due to reduced demand

Published Oct 23, 2024

Tridge summary

The global coffee market is experiencing a decline in robusta and arabica coffee prices for future deliveries, with recent rains signaling a potential recovery in production, though concerns remain for the 2025/26 crop due to delayed rains. Vietnam's Son La province is starting its 2024 coffee harvest with reduced output caused by El Nino but benefiting from favorable prices. While global demand for high-quality Arabica and specialty coffee remains strong, particularly in the EU, US, and Japan, demand for Vietnamese coffee is waning as countries diversify their sources. Additionally, the expected delay in the EU's deforestation regulations has lessened the urgency for new deals, impacting market dynamics.

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 for November 2024 delivery on the London floor decreased by 90 USD to 4,487 USD/ton. Previously, the price hit the lowest level since August 15 at 4,459 USD/ton. The price of arabica for December 2024 delivery on the New York floor decreased by 1.85 cents, closing at 249.85 US cents/lb. Highlights: - Coffee farmers said that the flowers blooming again after the rains have signaled a positive sign for the recovery of production after a long period of facing drought. However, the recovery ability and supply prospects for the 2025/26 crop still need to be monitored further because the rains came quite late. - Son La coffee enters the 2024 harvest season. Currently, Son La province has over 21,000 hectares of coffee with an estimated output of 35,000 - 45,000 tons of coffee beans/year, worth VND4,500 - 5,000 billion. Due to the impact of the El Nino weather phenomenon, Son La's coffee output this year has decreased, but the price is good. ...

Source: Vinanet