According to the Vietnam Commodity Exchange (MXV), closing the trading day on October 23, Robusta coffee prices continued to increase for the 8th consecutive session, pushing the current trading price to the highest in 4 months. Arabica prices also increased by 0.36%, remaining at the highest price in more than two months. Concerns about the ability to export coffee are the main factor supporting prices.

Prices of two types of coffee increased

Coffee traded on Commodity Exchanges is coffee futures. This is a highly liquid financial derivatives market (along with gold and crude oil), so it is very sensitive, in addition to the internal fundamental factors of the dominant commodity. In the context of increased risk concerns due to the war in the Middle East, new speculative money flows massively into commodity exchanges in general, including coffee.

Rain is expected to continue to spread in the southern and southeastern regions of Brazil, and coffee transportation for farmers may become more difficult. This creates confusion and concern about export restrictions in Brazil. In addition, the supply in Vietnam is even more scarce when the old coffee crop has run out and the new crop is not ready to be supplied, also creating pressure on export activities.

Updated yesterday, October 23, standard Arabica inventory on the ICE-US Department is at its lowest level in 11 months with 421,424 60kg bags. Meanwhile, the total amount of Robusta recorded at the ICE-EU Department is 35,860 tons, the lowest in 10 weeks and is returning to the historic low recorded since 2016.

On the domestic market, recorded this morning, the price of green coffee beans in the Central Highlands and Southern provinces suddenly increased sharply by 1,000 VND/kg, bringing the domestic coffee purchasing price to 60,400 - 61,300 VND/kg. . Thus, after a shock reduction of more than 7,000 VND/kg on October 19, domestic coffee prices have increased for 4 consecutive days. However, the total increase still cannot completely erase the sharp decline after the last shock reduction adjustment day. The record mark of 70,000 VND/kg for Vietnamese coffee has not yet returned.

Rising prices are an opportunity to promote coffee exports

Rising coffee prices are a great opportunity for coffee exports to grow in the near future. However, currently, small and medium-sized enterprises are facing many difficulties in accessing loans.

According to businesses, currently small and medium-sized businesses are mainly having to borrow capital in the form of real estate mortgages. Borrowing capital by mortgaging assets like this is causing private businesses to only be able to borrow very limited amounts of money, while purchasing coffee is very urgent because this is a seasonal agricultural product. High. Businesses do not have enough capital to ensure purchases and regulate plans, leading to price pressure because large volumes of coffee harvested during the main season are sold in a very short time.

To compete with foreign-invested enterprises, representatives of coffee producing and exporting enterprises emphasized that banks need to have credit granting policies for each industry, especially agricultural products. exports, including coffee.

The Vietnam Coffee and Cocoa Association said that an increase in coffee export prices leads to an increase in domestic coffee prices. It is expected that the amount of coffee exported in 2023 will reach about 1.72 million tons with a value of more than 4.2 billion USD, a new record in coffee exports for many years.