Coffee price on 07/25/2023: The market increased sharply

World coffee price on July 25

Coffee prices on July 25 in the world simultaneously increased at both major exchanges.

At the time of the survey, the price of Robusta on the London exchange for delivery in September 2023 increased by $46/ton, to $2,648/ton. And the November delivery term on this floor increased by $33/ton, at $2,474/ton.

The price of Arabica on the New York exchange delivered in September 2023 increased by 1.15 cents/lb; to 163.00 cents/lb. And December 2023 delivery increased by 1.75 cents/lb; at 163.30 cents/lb.

World coffee prices today simultaneously increased. In which, the price of Robusta coffee for delivery in September and November 2023 increased sharply by 1.77% and 1.35%, respectively. The price of Arabica coffee for delivery in September and December 2023, respectively, increased by 0.71% and 1.08%.

The Reais continued to strengthen by 1% to the highest level in 13.5 months, paving the way for Copom - Brazil to drastically cut interest rates by 0.5% at the next meeting. Consequently, it supports coffee prices because Brazil is the world's largest producer and exporter of coffee.

Meanwhile, the market is waiting for a move to increase the USD interest rate by 0.25% this period and the possibility that the Fed should signal that it can end this monetary tightening cycle. After the report, the US composite PMI was weaker, which boosted inflation.

Similarly, the ECB's Euro interest rate review after the BoE tightened monetary policy. This is to curb inflation by raising the pound interest rate to 5 %/year.

According to estimates by the analysis and consulting firm Safras & Mercados, about 83% of the Robusta coffee crop has been harvested, the same level as last year and below the five-year average of 89%. Meanwhile, the Arabica coffee harvest reached 58%, up slightly from 57% at the same time in 2022, but below the five-year average of 63%. 

Although there were a few rainy days at the beginning of the month, harvesting activities soon returned to normal.

Thus, the price of coffee on 07/25/2023 in the world market simultaneously increased sharply compared to yesterday.

Domestic coffee price on July 25

Coffee prices on July 25 in the country increased sharply by VND 800/kg compared to yesterday. 

Specifically, in 3 districts of Di Linh, Bao Loc and Lam Ha of Lam Dong province, they are trading at the same level of VND 67,000/kg.

In Cu M'gar district (Dak Lak), the price of coffee today remained at VND 67,500/kg. In Ea H'leo and Buon Ho districts, today's coffee price in Dak Lak is at VND 67,400/kg.

In Dak Nong province, traders Gia Nghia and Dak R'lap are purchasing at VND 67,700 and VND 67,600/kg, respectively.

In Gia Lai, Chu Prong district is trading at VND 67,300/kg, while Pleiku and La Grai are holding at VND 67,200/kg.

The purchase price at Kon Tum today is VND 67,300/kg.

The domestic coffee price today is also increasing strongly following the upward momentum on the London exchange. As a result, the domestic coffee market has approached the high threshold of VND 68,000/kg.

According to the General Department of Vietnam Customs, our country transported 31,607 tons of coffee in the first half of July 2023. This is only 46% of coffee exports in the same period last month and 46% lower than shipments in the same period last year. 

In addition, accumulated coffee exports from the beginning of the year to the end of July 15 stood at 1.04 million tons, down 3.78% from 1.08 million tons in the same period in 2022.

Thus, the price of coffee on 07/25/2023 in the domestic market traded around the threshold of VND 67,000 - 67,700/kg.

$1 = VND 23,480.00 - Source: Vietcombank