(HSV VIETNAM GROUP) – With a turnover of 1.38 billion USD in the first 2 months of 2024, coffee exports have surpassed rice and vegetables to rise to the number 1 position among exported agricultural products for the first time. Not only that, coffee also surpassed seafood (turnover of 1.2 billion USD) to take second place in the agriculture, forestry and fishery group, second only to wood and wood products...
According to the latest statistics of the General Department of Customs, in February 2024, the whole country exported 160,584 tons of coffee, with a turnover of 528.5 million USD, down 32.6% in volume and 27.3% in turnover compared to the previous month.
In the first 2 months of the year, Vietnam's coffee exports reached 438,000 tons, with a turnover of 1.38 billion USD, an increase of 27.9% in volume and an increase of 85% in value compared to the same period in 2023. This result has brought Vietnam's coffee export turnover to a new record, surpassing the 1 billion USD mark in just the first two months of the year.
RECORD HIGH EXPORT PRICES
Looking back at the export of agricultural products in 2023, the No. 1 position is vegetables and fruits with a turnover of 5.69 billion USD, second is rice with a turnover of 4.78 billion USD, and coffee ranks third with a turnover of 4.24 billion USD.
However, in the first 2 months of this year, surpassing vegetables (turnover of 815 million USD) and rice (708 million USD), coffee has become the industry with the largest export turnover among agricultural products. Not only that, coffee also surpassed seafood (2-month turnover reached 1.2 billion USD), to take second place in the agriculture, forestry and fisheries group, second only to wood and wood products...
In particular, Vietnam's average export coffee price in February 2024 set the highest record ever, averaging 3,276 USD/ton, up 7.4% compared to January 2024 and up 50.6% over the same period last year. Calculated for 2 months, the average export price of Vietnamese coffee reached 3,153 USD/ton, up 44.7% over the same period last year.
"The average export coffee price in the first 2 months of 2024 has increased by 1,000 USD tons compared to the first 2 months of 2023. The growth of all three criteria of quantity, price and average value of exported coffee products is helping coffee farmers, especially the coffee capital in the Central Highlands, enjoy great joy."
Vietnam Coffee and Cocoa Association.
According to the Vietnam Coffee and Cocoa Association, in the 2023/2024 crop year, Vietnam's coffee output is expected to decrease to 1.6 - 1.7 million tons, lower than 1.78 million tons in the 2022/2023 crop year. Although coffee output exported to the world may decrease, turnover value may still increase. It is expected that by 2024, Vietnam's coffee exports can reach the 5 billion USD mark.
According to the latest report of the International Coffee Organization (ICO), world robusta coffee prices continued to increase in February and remained at the highest level in 30 years. Meanwhile, global green coffee exports also set a new record milestone.
World coffee prices compiled and monitored by ICO (I-CIP) averaged 182 US cents/pound in February, up 3.2% over the previous month and up 6.8% over the same period last year. This is also the highest price achieved in the past 17 months, fluctuating between 177.5 - 187.1 US cents/pound.
In particular, robusta coffee prices in February 2024 continued to increase by 3.2% compared to January 2024, to an average of 153.3 US cents/pound, the highest level recorded since November 1994.
Similarly, Colombian Arabica and other Arabica coffee prices also increased by 1.9% and 2.7%, respectively, reaching 209.5 US cents/pound and 208.8 US cents/pound. Brazilian Arabica was the group with the strongest fluctuations, increasing by 4.1% to an average of 186.7 US cents/pound.
ICO's report shows that coffee exports of all types from Asia and Oceania increased by 47.1% in January 2024 to nearly 5.1 million bags. Mainly because Vietnam's coffee exports increased by 66% to more than 4 million bags. This is the largest monthly export volume ever recorded, surpassing the previous record of 3.6 million bags achieved in March 2022.
DOMESTIC COFFEE PRICES ARE AT A HIGH LEVEL
Coffee prices in Vietnam's domestic market have increased continuously over the past year, from 38,000 VND/kg in early January 2023, to 61,000 VND/kg in mid-November 2023. By early 2024, the price will reach 70,000 VND/kg and increase to 80,000 VND/kg on February 15, 2024.
According to updates from information sites specializing in coffee prices, at present, domestic coffee prices tend to be stable and are standing at a high level, exceeding the mark of 93,000 VND/kg.
Specifically, domestic coffee prices were updated at 4:24 a.m. on March 18, 2024 as follows: the average buying price of green coffee beans at gardens in Gia Lai and Kon Tum provinces is 93,000 VND/kg; The highest buying price in Dak Nong province is 93,200 VND/kg. Meanwhile, the price of green coffee beans (green coffee, fresh green coffee) in Lam Dong province in districts such as Bao Loc, Di Linh, Lam Ha, coffee is purchased at a price of 92,400 VND/kg.
For the world market, coffee prices were updated on the Vietnam Commodity Exchange (MXV) trading floor at 4:24 a.m. on March 18, 2024, showing that coffee prices on all exchanges are stable at a high level. Specifically, at the end of the trading session, the price of Robusta coffee on the London floor at 4:24 a.m. on March 18, 2024 tended to be stable, with little fluctuation compared to the previous trading session, ranging from 3,038 - 3,318 USD/ton.
Of which, the delivery term in May 2024 is 3,308 USD/ton; Delivery term in July 2024 is 3,211 USD/ton; Delivery term in September 2024 is 3,139 USD/ton and delivery term in November 2024 is 3,062 USD/ton.
Similarly, Arabica coffee prices on the New York floor on the morning of March 18, 2024 tend to be stable, ranging from 180.20 - 185.10 cents/lb. Specifically, the delivery term in May 2024 is 182.95 cents/lb; July 2024 delivery period is 181.65 cents/lb; September 2024 delivery period is 181.35 cents/lb and December 2024 delivery period is 181.05 cents/lb.
Brazilian Arabica coffee prices on the morning of March 18, 2024 maintained a stable level and remained quite high at delivery terms. Specifically, the delivery term in March 2024 is 219.05 USD/ton; Delivery period in May 2024 is 223.70 USD/ton; July 2024 delivery is 224.85 USD/ton and September 2024 delivery is 220.50 USD/ton.
According to experts, world coffee prices will continue to remain stable at a high level from now until May 2024 - this is the time when countries in the Northern Hemisphere (mainly Vietnam) finish their coffee harvest. By the second quarter of 2024, the coffee harvest of countries in the Southern Hemisphere (main focus is Brazil), coffee prices may fluctuate depending on Brazil's harvest output.
Ha Diem HSV