Coffee Prices Rising Again? Vietnamese Coffee Bean Prices Fluctuate Amid Worst Typhoon in 30 Years

Vietnam's Worst Typhoon in 30 Years
Robusta Coffee Bean Prices Up 3%
Arabica Prices Also Up 3.8%

Vietnam, ranked as the world's second-largest coffee bean producer, suffered significant damage due to Super Typhoon 'Yagi,' causing global coffee bean prices to rise.

According to Bloomberg on the 9th (local time), the price of Robusta beans, one of the two major coffee varieties in the global coffee market, rose nearly 3% on the London ICE Futures Exchange. The price of Arabica, another representative coffee variety along with Robusta, increased by 3.8% in the New York market. This appears to reflect market concerns that coffee crop yields may decline as Vietnam, the world's largest Robusta producer, was hit by Yagi. Vietnam accounts for about one-third of the world's Robusta supply.

[Image source=Pixabay]

U.S. financial services company ADM Investor Services observed in a report on the same day that heavy rain and strong winds brought by Yagi likely caused damage such as fallen coffee beans in northern Vietnam. However, the exact scale of damage to coffee farms has not yet been determined.

Moreover, Brazil, the world's largest coffee producer, is also experiencing poor crop conditions due to abnormal weather. Recently, high temperatures and drought during the coffee tree flowering period, which determines next year's crop, have raised concerns about adverse effects on next year's harvest. Bloomberg explained that the global coffee bean supply and demand situation is becoming tight.

On the 8th (local time), trees uprooted by Typhoon Yagi, the 11th typhoon, lie fallen in Ha Long city, Quang Ninh province, Vietnam. [Image source=AFP Yonhap News]

Meanwhile, the Vietnamese government reported that as of the 7th, when Typhoon Yagi made landfall in northern Vietnam, 49 people had died and 22 were missing.

Yagi brought strong winds with a maximum speed of 166 km/h and over 300 mm of heavy rain to major northern regions of Vietnam, resulting in significant casualties. In particular, northern Hoa Binh Province and Son La Province experienced heavy rainfall reaching 430 to 440 mm. A representative from the Vietnam Meteorological Agency explained, "Among typhoons that have made landfall in Vietnam over the past 30 years, Yagi was the most powerful."

Nguyen Hoang Hiep, Deputy Minister of Agriculture and Rural Development, also stated, "The situation is very serious," emphasizing, "Local authorities must actively act to support and ensure the safety of residents and their assets." According to the Ministry of Agriculture and Rural Development, nearly 121,700 trees have fallen so far, including 24,807 trees in the capital Hanoi, about 40,000 trees in Hai Duong Province, and 31,860 trees in Bac Ninh Province.