The Latest Scoop on Vietnam’s Booming Coffee Industry: January 17, 2024 – Coffee lovers, wake up and smell the latest updates on Vietnam’s coffee trade. As of 5:12 AM today, the Vietnam Commodity Exchange (MXV) has released new figures on coffee prices from the bustling growing regions of the Central Highlands, Lam Dong and Kon Tum.
Arabica and Robusta prices continue to climb, mirroring global trends. Premium green coffee is fetching top dollar according to MXV, the only channel in Vietnam linking local exchanges to international trading in real-time.
With output reaching up to 35 million 60-kg bags annually, Vietnam has emerged as a coffee powerhouse. This boom has analysts watching closely as prices react to shifts in supply and demand.
Stay tuned for more inside information on Vietnam’s coffee trade here at MXV or visit our website at www.mxv.com.vn for up-to-the-minute pricing. The world is waking up to the allure of Vietnam coffee.
Coffee Futures Soar to New Heights in Early Trading
Today’s online coffee prices of the three main coffee futures exchanges ICE Futures Europe, ICE Futures US, and B3 Brazil are continuously updated by Y5Cafe throughout the trading hours of the exchange, updated by the website www.giacaphe.com update as follows:
Coffee futures raced to fresh multi-year highs in early trading today, signaling turbulent times ahead for coffee roasters and cafés worldwide.
Robusta prices on the London ICE exchange rocketed to a blistering $3,141 per ton for January contracts by the closing bell this morning. That’s up nearly $150 from yesterday’s finish and marks a 10-year peak for the exchange.
March 2024 and May 2024 contracts also closed firmer, settling at $2,977 and $2,870 per ton respectively. July futures lagged but still finished strongly at $2,792.
Veteran coffee traders say supplies are struggling to keep pace with surging demand, especially from emerging markets. This structural deficit has propelled global coffee prices to levels not seen since the commodity boom of 2014.
Industry experts warn more volatility may be brewing as weather disruptions in top exporting countries add fuel to the raging bull market. For now, coffee’s rocket ride shows no signs of cooling off.
New Year Brings Renewed Upswing for Global Coffee Trade
Arabica prices also went along for the ride, with New York futures rallying to fresh multi-month tops. March 2024 contracts zoomed to 186.35 cents per pound, up 3.53% from yesterday’s settlement. Gains were nearly as frothy for May (+3.13%), July (+3.07%), and September (+2.89%) positions.
Down in Brazil, the world’s top Arabica grower, near and far contracts climbed steadily on rising global demand. March 2024 added around $4 to finish at $227 per ton, while September 2024 tacked on $3 to end at $221.85. Prices eased slightly for May and July but held near recent highs above $216.
- Robusta coffee traded on ICE Futures Europe (London floor) opens at 16:00 and closes at 00:30 (the next day), Vietnam time.
- Arabica coffee on the ICE Futures US floor (New York floor) opens at 16:15 and closes at 01:30 (the next day), Vietnam time.
- For Arabica coffee traded on the Brazilian B3 floor, it will be open from 19:00 – 02:35 (the next day), Vietnam time.
Vietnamese Coffee Prices Hit Record Highs Amid Supply Crunch
Vietnam’s domestic coffee market continues to sizzle, with buyers bidding prices to fresh all-time highs today amid tightening supplies.
At the opening bell this morning, Central Highlands growers saw offers reach 71,500 VND/kg ($3.05), eclipsing yesterday’s peak of 71,300 VND/kg ($3.02). Prices remain elevated nationwide, averaging 71,300 VND/kg across key regions.
In Dak Nong, Africa’s top Robusta exporter, prices touched 71,500 VND/kg, the highest nationwide. Neighboring Gia Lai and Kon Tum also saw strong buyer interest at 71,400 VND/kg.
Even in Lam Dong, famed for its smooth Arabica beans, growers fetched up to 70,900 VND/kg, with traders aggressively sourcing fresh cherry and parchment.
Shipping Disruptions in Red Sea Stoke Supply Worries
With the harvest winding down, many fear supplies may not keep pace with blistering global demand. That could propel domestic prices to new records this year, squeezing roaster margins but bringing cheer to Vietnamese growers.
According to analysts, the shutdown of maritime transport routes through the Red Sea region continues to cause concerns about Robusta supply shortages from Asian countries, including Vietnam – the second-largest coffee exporting country in the world.
The Red Sea is an important maritime route, connecting the Mediterranean with the Indian Ocean, or from Europe to Asia. Therefore, tensions in the Red Sea increase risks to global trade flows and add costs to the shipping sector. Vietnamese businesses are also significantly affected by “hot” developments in the Red Sea.
Perfect Storm Brews for Prolonged Coffee Rally
The Import-Export Department (Ministry of Industry and Trade) in Vietnam cited data, saying tensions in the Red Sea could cause a container passing through Europe to incur an additional cost of 1,000 – 2,000 USD.
Data reported by ICE London shows that on January 15, Robusta inventory decreased by 1,170 tons, or 8.92% compared to the end of last week, down to 31,940 tons (about 532,333 bags, 60 kg bags) – a new record low since early September 2023.
Now, Europe can almost only rely on Vietnam to buy Robusta coffee. Therefore, it is likely that coffee prices in Vietnam will continue to increase in 2024, even being the highest in the world.
The US Department of Agriculture (USDA) forecasts that in the 2023-2024 crop year, global Robusta coffee production will decrease for the second consecutive year to 74.1 million bags compared to 76.6 million bags in the previous crop year which is a low level. highest in the last 4 crop years.
With the current situation, just by April – May 2024, farmers can push out their goods, contributing to boosting our country’s coffee exports to surpass the $4 billion mark early in 2024, while also setting a record. new export value if the situation lasts until the end of the year.