Coffee price on 04/01/2024: Approaching VND 99,000/kg

Coffee price on April 1 in the world

Around the world, the London and New York exchange prices on April 1 simultaneously went sideways.

In particular, Robusta's price on the London exchange for delivery in May 2024 is anchored at $ 3,479/ton. The July 2024 delivery term price remains at $ 3,396/ton.

On the New York exchange, Arabica's price for delivery in May 2024 maintained around 188.85 cents/lb. And the July 2024 delivery date price is 188.05 cents/lb.

World coffee prices today still have no new fluctuations. Last week, both London and New York exchange prices increased sharply. In particular, the price of Robusta for delivery in May increased sharply by $ 121/ton, while the price of Arabica for delivery in May increased to 4 cents/lb.

After many months of facing low supply, this agricultural product has begun to receive new signals from harvesting activities in Brazil and Indonesia. 

In Brazil, some early Robusta growing areas in Espirito Santos will begin harvesting in the early second quarter of 2024. According to forecasts from the CONAB Agency, Robusta output in the 2024/25 crop will reach nearly 15 million bags, an increase of more than 7% compared to the previous crop. Among them, Espirito Santos continues to be the main farming area, accounting for 65% of the country's total Robusta production.

In the context of improved output in the 20244/25 crop, it is likely that Brazil will continue to boost exports of coffee varieties rich in bitter flavour, extending the recent record streak. From the beginning of the 2023/24 season (from July 2023 to the end of February 2024), Brazil has exported about 5 million bags of granular Robusta, 5 times higher than the same period last year. Currently, Brazil has entered the final months of the crop year. The monthly export volume of Robusta still maintains 500,000 - 600,000 bags, a record export volume compared to the same period in previous seasons.

Besides Brazil, in April 2024, Indonesia - the world's third largest Robusta exporter - will also enter a new crop. 

In contrast to the prosperity in Brazil, El Nino still persists in the agricultural product-producing areas of Indonesia, causing the Robusta harvest in 2024 to be forecast to remain low. 

Faced with a situation where output is still limited, combined with the low supply of previous crops, there is a high possibility that Indonesia's coffee export activities in the coming time will not be able to improve significantly. In 2023, this Southeast Asian country will only export about 2.5 million bags of granules, down about half compared to the same period last year. 

Thus, world coffee prices on 03/01/2024 remain stable compared to yesterday.

Coffee price on April 1 in the country

The domestic market on April 1 increased slightly by VND 100/kg compared to yesterday. 

Specifically, in Lam Dong province, 3 districts of Di Linh, Bao Loc and Lam Ha are trading at the same level of VND 98,100/kg.

In Dak Lak, Cu M'gar district today is purchasing at VND 98,600/kg. Ea H'leo and Buon Ho districts are trading at VND 98,500/kg.

In Dak Nong province, traders in Gia Nghia and Dak R'lap are trading at VND 98,700 and VND 98,600/kg, respectively.

In Gia Lai province, Chu Prong district is trading at VND 98,600/kg, while Pleiku and La Grai are both maintaining the price of VND 98,500/kg.

The purchasing price in Kon Tum today is VND 98,500/kg.

Domestic coffee prices today increased slightly and are getting closer to the threshold of VND 99,000/kg. Last week, the domestic market continued to have the third consecutive week of hot growth when the price increased by up to VND 4,000/kg.

In summary, in March 2024, the domestic market price increased sharply by VND 15,000/kg. The prices of this agricultural product continue to break records, supported by tight supply and concerns that dry weather will cause next year's output to decline.  

The Ministry of Agriculture and Rural Development has just announced the reason that Vietnam exported nearly 600,000 tons of coffee in the first quarter of 2024, with a turnover of about $ 1.9 billion. Currently, Vietnam has about 660 thousand ha of this agricultural product. Of which, speciality coffee accounts for only 2% and organic accounts for 3% of the area. 

Leaders of the Department of Agriculture and Rural Development of Dak Lak province said that with agricultural product prices (including coffee) at a good level today, farmers benefit the most, with increased income. However, to harmonize the interests of all parties, it is necessary for farmers to share and communicate with businesses operating in this field so that local agricultural products have both output and more stable development. 

Thus, the domestic coffee price on 04/1/2024 is trading around the threshold of VND 98,100 - 98,700/kg.