To sum up the week, domestic coffee prices witnessed alternating increases and decreases.
Although the weekend session ended with a deep decrease, overall, this week saw a breakout and increase again.
To conclude the week, London Robusta coffee futures for January 2025 delivery increased by 97 USD/ton. New York Arabica coffee futures for December delivery increased by 10.4 cents/lb. Robusta coffee had a week of increase after 5 consecutive weeks of sharp decline.
Experts say the factor that helped the green color return was the US Federal Reserve (Fed)'s 0.25% interest rate adjustment on November 7. This move by the Fed caused the USD index to fall sharply and boosted purchasing power for coffee. In addition, developments in the US presidential election also contributed to the impact of the currency market on commodity prices.
Weather factors continue to play an important role in the path of coffee prices. Concerns that unusually dry conditions in Brazil could limit the country’s output have led to a slight surge in coffee prices, pushing Arabica prices to a three-week high and Robusta to a one-week high. Robusta prices were also supported by concerns that heavy rains as Typhoon No. 7 makes landfall in Vietnam could affect harvest work in the Central Highlands.
However, the harvest has just begun and this stage will continue until the end of the year. The Import-Export Department, Ministry of Industry and Trade forecasts that Vietnam's coffee export volume in the last months of the year will recover thanks to supply from the new harvest and increased demand.
