Coffee price on 04/05/2024: Decreasing after a period of increase

Coffee price on April 5 in the world

In the world, the London and New York exchange prices on April 5 fluctuated in opposite directions.

In particular, the price of Robusta on the London exchange for delivery in May 2024 decreased sharply by $ 46; down to about $ 3,766/ton. And the July 2024 delivery term price decreased by $ 29; at $ 3,698/ton.

On the New York exchange, the price of Arabica delivered in May 2024 increased by 3.15 cents; to 206.75 cents/lb. And the term for delivery in July 2024 increased by 3 cents; reaching 205.80 cents/lb.

Today's world coffee prices on the London exchange dropped sharply by 1.2% after a series of hot days of increase. Meanwhile, Arabica prices on the New York exchange continue to increase sharply, increasing about 1.5% more than yesterday.

Previously, after only 2 sessions, Robusta's price increased to $ 330/ton. The explanation for this, experts say, is due to concerns about excessive drought in Vietnam in recent times, which could affect output. 

In addition, the escalation of tensions in the Red Sea has created unforeseen complications in shipping routes, promoting the need for roasters to switch to storing coffee in the consuming country.

According to data from Eurostat, in 2023, the EU imports 4.05 million tons of coffee (HS code 0901), worth $ 20.79 billion; down 9% in volume and 10.2% in value compared to 2022. The reason why the European Union (EU) reduced imports is because the economy is in recession and inflation remains high, causing people to tighten spending. 

Also in 2023, the EU will reduce imports of these agricultural products from the Colombian and Swiss markets, but increase imports from Honduras.

Many forecasts show that, although the EU will reduce coffee imports in 2023 when the economy recovers, European people's demand for this product will increase again. According to ECF, the European Union has the highest per capita coffee consumption in the world, although consumption levels in member markets vary. 

It is estimated that the size of the European coffee market will reach $ 47.88 billion in 2024 and reach $ 58.14 billion in 2029, an average growth of 3.96% in the period 2024 - 2029. 

Thus, world coffee prices on 04/05/2024 increased and decreased in opposite directions compared to yesterday.

Coffee prices on April 5 in the country

Domestically, the coffee market on April 5 turned down sharply by VND 1,000/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 101,700/kg.

In Dak Lak, Cu M'gar district today is purchasing at VND 102,000/kg. Meanwhile, Ea H'leo and Buon Ho districts are trading at VND 101,900/kg.

In Dak Nong province, traders Gia Nghia and Dak R'lap are trading at VND 102,200 and VND 102,100/kg, respectively.

In Gia Lai province, Chu Prong district is trading at VND 102,000/kg, while Pleiku and La Grai are maintaining the same price at VND 101,900/kg.

The purchasing price in Kon Tum today is VND 102,000/kg.

Domestic coffee prices today turned down sharply. However, this reduction has not had much impact as the purchasing price is still above the threshold of VND 102,000/kg.  

Noting the fact, the Central Highlands is in the peak period of the dry season in 2024. Prolonged intense hot weather causes water levels in rivers, streams, lakes and dams to decrease rapidly. Some places have exhausted their water sources.

This year, due to the effects of climate change, the dry season comes earlier than usual and the longer hot weather, water levels at dams in some localities decreased rapidly. 

Thus, the domestic coffee price on 04/05/2024 is trading around the threshold of VND 101,700 - 102,200/kg.