DAILY: Vietnamese coffee prices rose by 200 -400 VND on September 18, 2024
Wednesday, September 18,2024AsemconnectVietnam - On Wednesday, robusta coffee prices in Vietnam's Central Highlands, the country's largest coffee-growing area, rose by 200-400 VND to 123,300–123,800 VND per kg compared to Yesterday, according to Kinhtedothi.
Gia Nghia of Dak Nong provided the maximum price of VND123,800/kg, while traders in Lam Dong province offered the lowest price of VND123,300/kg. Robusta coffee decreased to 123,300VND per kg in Bao Loc, Di Linh, Lam Ha; to 123,400-123,500VND per kg in Dak Lak; to 123,400-123,500VND per kg in Dak Nong; to 123,400VND per kg in Kon Tum, and to 123,300-123,400VND per kg in Gia Lai.
Brazil has been facing the driest weather since 1981, according to the natural disaster monitoring center Cemaden. Rainfall in Brazil has consistently been below normal since April, damaging coffee trees during the all-important flowering stage and reducing the prospects for Brazil's 2025/26 arabica coffee crop. Somar Meteorologia reported Monday that Brazil's Minas Gerais region received no rain over the past week. Minas Gerais accounts for about 30% of Brazil's arabica crop. Also, robusta coffee has support after heavy rain from typhoon Yagi may have damaged Vietnam's robusta coffee fields.
Robusta coffee prices are underpinned by fears that excessive dryness in Vietnam will damage coffee crops and curb future global robusta production. Vietnam's agriculture department said on March 26 that Vietnam's coffee production in the 2023/24 crop year dropped by -20% to 1.472 MMT, the smallest crop in four years, due to drought. The USDA FAS on May 31 projected that Vietnam's robusta coffee production in the new marketing year of 2024/25 will dip slightly to 27.9 million bags from 28 million bags in the 2023/24 season. Last Wednesday, the General Department of Vietnam Customs reported that Vietnam's August coffee exports fell -9.9% y/y to 76,214 MT and that Vietnam's Jan-Aug coffee exports fell -12.1% y/y to 1.06 MMT.
The USDA's bi-annual report on June 20 was bearish for coffee prices. The USDA's Foreign Agriculture Service (FAS) projected that world coffee production in 2024/25 will increase +4.2% y/y to 176.235 million bags, with a +4.4% increase in arabica production to 99.855 million bags and a +3.9% increase in robusta production to 76.38 million bags. The USDA's FAS forecasts that 2024/25 ending stocks will climb by +7.7% to 25.78 million bags from 23.93 million bags in 2023/24. The USDA's FAS projects that Brazil's 2024/25 arabica production would climb +7.3% y/y to 48.2 mln bags due to higher yields and increased planted acreage. The USDA's FAS also forecasts that 2024/54 coffee production in Colombia, the world's second-largest arabica producer, will climb +1.6% y/y to 12.4 mln bags.
Following are domestic Robusta coffee prices on September 18, in Vietnam's Central Highlands:
T.Huong
Source: Vitic
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