Coffee price today 12/8/2024

World coffee prices fell sharply last weekend, but remained on an upward trend. Last week, robusta coffee futures for September delivery rose by $99 per ton, while arabica rose by 4 cents per lb.

Domestic coffee prices lost an average of VND4,000/kg last week, currently trading in the range of VND118,600 - 119,300/kg.

At the end of last week's trading session (August 9), according to The World & Vietnam , the price of robusta coffee on the ICE Futures Europe London exchange fell sharply, with the September 2024 delivery term down 110 USD, trading at 4,326 USD/ton. The November 2024 delivery term down 91 USD, trading at 4,162 USD/ton. Trading volume was low.

Arabica coffee prices on the ICE Futures US New York exchange fell sharply, with the September 2024 delivery term down 11.25 cents, trading at 234.05 cents/lb. Meanwhile, the December 2024 delivery term down 9.10 cents, trading at 230.25 cents/lb. Trading volume was high.

Domestic coffee prices at the end of last week (August 10) decreased by VND2,500/kg in key purchasing localities. (Source: Coffeeam)

The world market recorded two sessions of high growth alternating with three sessions of decline last week and it is forecasted that coffee prices will continue to fluctuate in the coming time, especially when the leading consumer market, the EU, has just issued a draft to control the quality of imported goods, including coffee.

Coffee futures fell sharply late last week after Brazil’s forecast for warmer weather next week appeared to be fading, with frost risks seemingly absent. Harvest pressure in Brazil also weighed on prices. Safras & Mercado reported Friday that Brazil’s 2024/25 coffee harvest was 92% complete as of Aug. 6.

Higher shipping costs are not just disrupting supplies. Attacks on the Suez Canal by Houthi rebels have caused delays of up to four weeks and quadrupled shipping costs as many ships are forced to travel to Europe via Africa. The increased costs will be passed on to commodity prices.

This week, the market is waiting for the US economic inflation data to be released on August 14. Currently, speculators expect inflation to decrease compared to last month, which will be a signal for the US Federal Reserve (Fed) to reduce interest rates at its next meeting. Therefore, the market is expected to not increase sharply before August 14, remaining stable. Experts say that coffee prices will remain stable at the beginning of this week until the US releases inflation data, then the market will increase again.

As the world's largest exporter of robusta coffee, in the past 7 months Vietnam also spent 110 million USD to import coffee to meet domestic demand as well as export processing.

Updated in July, coffee exports reached 70,000 tons, down nearly 36% compared to the same period in 2023. In the first 7 months of 2024, Vietnam's coffee exports reached 964,000 tons, down nearly 14% compared to the same period last year. Export turnover reached 3.54 billion USD, up 31% over the same period last year. The high export turnover despite the decrease in volume is due to coffee prices continuously maintaining high levels since the beginning of the year.

According to the Ministry of Agriculture and Rural Development, coffee is one of the items with the highest trade surplus at 3.43 billion USD and the highest growth rate, reaching 32% over the same period in 2023. Meanwhile, wood and wood products lead with a trade surplus of 7.3 billion USD but the growth rate is only 22% over the same period last year.