Friday 12 April 2024
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Coffee prices over the 100,000 VND mark in Vietnam, London eases from Wednesday’s highs

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MILAN – Robusta coffee prices in Vietnam hit a new historic milestone this week exceeding the 100,000 VND mark. Meanwhile, London’s main contract for May delivery receded yesterday from the all-time highs reached in the mid-week session. On Wednesday, the Ice Robusta benchmark had settled at $3,559 a metric ton after hitting a peak of $3,599, the highest level since the current form of the contracts started trading in 2008.

This was followed by an $80 decline on Thursday bringing the price down to $3,479.

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In New York, the front month was 180 points down to 188.85 cents per lb on dollar’s weakness. Cocoa futures closed mixed. New York was down by $77 to $9,766, while London rose $68 to end the day at £8,276.

In Vietnam, coffee has become the agricultural export product with the strongest growth in the first quarter of this year. In the first 3 months of 2024, the country exported 799 thousand tons of coffee, or 13.3 million 60-kg bags, earning $1,9 billion; a 44.45% increase in volume and 54,2% in value over the same period in 2023.

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“Coffee is the product with the second highest export turnover in the agricultural sector, second only to wood products, and surpassing seafood. With this situation, it is forecast that coffee exports earnings for 2024 will set a record $ 5 billion,” the Ministry of Agriculture and Rural Development said in a statement.

Farmers in the central highlands, Vietnam’s largest coffee-growing area, are selling beans COFVN-DAK for 98,100-100,200 dong ($3.96-$4.04) per kg, up from 93,000-94,200 dong range a week ago, Reuters reported on Thursday.

Traders offered 5% black and broken-grade 2 robusta COFVN-G25-SAI at a premium of $600-$620 per ton to the May contract, says the same source.

In Brazil, by way of comparison, the CEPEA/ESALQ index for Arabica type 6, delivered to São Paulo, is currently equal to 208.39 dollars per 60 kg bag. The CEPEA/ESALQ index for Robusta type 6 Espírito Santo is at $191.80/bag or $3,197 per ton.

In India, Robusta coffee prices have surged past Arabica prices to reach an unprecedented all-time high, driven by global supply shortages, report Indian media. The farmgate price of Robusta green coffee berries soared to a record ₹172 per kg in the Wayanad market, on Wednesday marking a significant increase from ₹115 per kg during the same period last year.

Additionally, the spot price of Robusta Parchment coffee beans skyrocketed to an all-time high of ₹315 per kg, compared to ₹220 per kg in March 2023.

In the Kodagu market, the price of Robusta parchment surged to Rs 14,700 per 50 kg bag, setting a new milestone. This marks the first time that the price of cherry and parchment coffee has surpassed that of Arabica. Arabica cherry coffee is currently priced between 8000-8200 per 50 kg bag, while Robusta commands a higher price of over 8600 -8700 rupees.

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