Concerned about the prospect of Robusta supply from Vietnam, export coffee prices will increase again

Published Jun 21, 2024

Tridge summary

Robusta coffee prices have surged by 1.65% to over 4,060 USD/ton on June 19, driven by concerns over low coffee output in Vietnam's 2024-2025 crop year due to drought and pest issues. The drought is expected to decrease Vietnam's coffee output by 20% to 1.47 million tons in the 2023-2024 crop year, the lowest in four years. As a result, the domestic coffee supply is nearly depleted, and the amount of goods in stock is only enough to sell until around June 2024. Industry experts predict that coffee prices will likely maintain a high level, despite not fluctuating as strongly as in recent months. The high prices are attributed to the drought in Vietnam and Brazil's full harvest season.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Congthuong.vn During the trading session on June 19, Robusta coffee prices increased by 1.65%, to over 4,060 USD/ton, while Arabica coffee was on holiday. Concerns about low coffee output in the 2024-2025 crop year are still a factor supporting prices. Rain returned to the main coffee growing area but could not completely overcome the damage caused by drought earlier this year. Analysts are concerned that next crop's coffee output in our country will be low for many years. Coffee prices will increase again, mainly due to increased concerns among investors about the supply prospects from Vietnam. Currently, hedge funds have increased their net buying position with the prediction that Robusta supply from Vietnam will continue to be scarce in the near future, the Import-Export Department forecasts. In the context of a single market, Robusta coffee prices on the London floor increased sharply again. Strong buying force at the end of the session from speculation on the floor helped ...
Source: AgroInfo.vn
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