Coffee price on 11/6/2023: Highest price reaching VND 58,200/kg

Coffee prices on 11/6 in the world

On the global market, the London and New York exchange prices on November 6 simultaneously moved sideways.

In particular, Robusta's price on the London exchange for delivery in November 2023 remains at $ 2,372/ton. And the January 2024 delivery term on this exchange is anchored at $ 2,323/ton.

On the New York exchange, Arabica price delivered in December 2023 is 170.90 cents/lb. And the March 2024 delivery term price remains at 169.15 cents/lb. 

World coffee prices today continue to move sideways. Last week, the London and New York exchange prices fluctuated in opposite directions. In particular, the price of Robusta delivered in January 2024 decreased slightly by $ 11/ton; while the price of Arabica delivered in December 2023 increased sharply by 9.7 cents/lb. 

With developed country governments seemingly unwilling to change their tariff regimes, developing country governments must rely on financial incentives to combat them. For example, they could subsidize exports of processed coffee and impose export taxes on unprocessed coffee. 

Malaysia did the same thing with palm oil. After the UK imposed high tariffs on processed palm oil imports, Malaysia reduced taxes on processed palm oil and imposed an export tax on crude palm oil exports. 

Processed coffee exporters in the Global South also face non-tariff or technical barriers, such as sanitary and phytosanitary regulations. Of course, these barriers are completely legitimate.

To overcome them, southern exporters must invest in building technological capacity and developing new cultivation and processing methods to meet international safety, environmental and social standards. 

Exporters in the Global South could even go so far as to produce and export branded coffee to sell directly to consumers in the North. After all, branding and marketing are the segments with the highest added value. The problem is that the barrier to entry in the consumer market is high and it takes significant resources – as well as a significant degree of risk tolerance – to build a new brand.

One way companies can overcome some of these barriers is by acquiring existing brands. This is another lesson from Malaysia, which carried out a hostile takeover of British palm oil companies at the London Stock Exchange.

In fact, this form of international acquisition has served as a useful catch-up strategy for some late movers, especially China.

Thus, world coffee prices on 11/6/2023 are unchanged compared to yesterday.

Coffee prices on 11/6 in the country

The domestic market on 11/6 remained stable 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 57,200/kg.

In Dak Lak, Cu M'gar district today is purchasing coffee at VND 58,200 VND/kg. Meanwhile, Ea H'leo and Buon Ho districts are trading coffee at VND 58,100/kg.

In Dak Nong province, traders Gia Nghia and Dak R'lap are trading at VND 58,000 and 57,900/kg, respectively. 

In Gia Lai province, Chu Prong district is trading at VND 58,000/kg, while Pleiku and La Grai are maintaining the same price at VND 57,900/kg.

The purchasing price in Kon Tum today is VND 58,000/kg. 

Domestic coffee prices today remain stable, with the highest purchasing level above VND 58,000/kg. Last week, the domestic market dropped another VND 1,300 - 1,500/kg. 

Thus, the domestic coffee price on 11/6/2023 is trading around the threshold of VND 57,200 - 58,200/kg.

 $ 1 = VND 24130 - Source: Vietcombank