Export coffee prices increase when supply from Vietnam is forecast to decrease by 20%
Coffee Drinks
Vietnam
Market & Price Trends
Published Mar 28, 2024
Tridge summary
The coffee market is experiencing a notable increase in the prices of both Arabica and Robusta beans, driven by concerns over supply risks. Arabica prices are climbing due to supply concerns, while Robusta prices are affected by a forecasted 20% decrease in Vietnam's coffee exports for the 2023/24 crop year, attributed to dry weather and the impact of the El Nino phenomenon and climate change. This situation has led to a record increase in Robusta futures prices, with the Vietnam Coffee Association (Vicofa) predicting lower output and potential supply shortages. Despite the current benefit to farmers from high coffee prices, there's a call for a balance between the interests of farmers and businesses to ensure the sector's stable development. Additionally, the global reliance on Vietnam's high-quality, good-value Robusta coffee is expected to face a serious shortage, potentially ending the era of cheap raw coffee materials.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.
Original content
According to congthuong.vn According to the Vietnam Commodity Exchange (MXV), at the end of the March 25 session, the prices of two coffee products continued to increase by 1.29% for Arabica prices and 1.4% for Robusta prices, respectively. Fear of supply risks in the market was a factor supporting Arabica prices yesterday. In the closing report on March 25, the standard Arabica inventory on the ICE-US Department continued to be added with nearly 9,000 60kg bags, bringing the total amount of Arabica in storage to the highest level in more than 9 months, reaching 577,023 bags. . However, the amount of coffee waiting to be sorted to add to ICE's reserves has continuously decreased for nearly two weeks, to about 80,000 bags. This may inhibit the ability to expand the capacity for inventory data in the near term. With Robusta, the Vietnam Coffee Association (Vicofa) estimates that the amount of coffee exported in our country's 2023/24 crop year will decrease by 20% compared to the ...
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