Coffee prices on 03/26/2024: Domestic prices increased sharply

Coffee prices on March 26 in the world

In the world, the London and New York exchange prices on March 26 simultaneously increased.

In particular, the price of Robusta on the London exchange for delivery in May 2024 increased sharply by $ 59; reaching $ 3,417/ton. And the July 2024 delivery term price increased to $ 62; at $ 3,326/ton.

On the New York exchange, the price of Arabica delivered in May 2024 increased slightly by 0.8 cents; and reached 185.65 cents/lb. And the July 2024 delivery term increased by 0.9 cents; at 185.65 cents/lb.

World coffee prices today increased simultaneously, in which Robusta prices increasing sharply by over 1.7%.

According to The Hindu, Robusta farmers in Southern India are happy when the price of this agricultural product reaches a record high after harvest. 

Accordingly, the price of raw Robusta (fruit form) at the farm reached a record level of 172 rupees/kg on March 23, much higher than 115 rupees/kg in the same period last year. Meanwhile, the spot price of green kernel Robusta stood at 315 rupees/kg, up from 210 rupees/kg in the same period in 2023.

If compared to 2 years ago, the current price is twice as high. Green fruit and kernels in March 2022 are priced at 80 and 145 rupees/kg, respectively.

Sources said that although the harvest is almost completed, there is a huge shortage of supply to the market this year, thereby contributing to the increase in prices of this agricultural product.

Many people predict that Indian Robusta production will decrease by 30% this year due to erratic climate changes, especially the low number of flowers blooming in Robusta growing areas last year.

In addition, the information that Robusta production has decreased sharply (nearly 2 million bags) in Vietnam is also the reason for the price increase of this product. In addition, Robusta production in Indonesia also decreased sharply this year.

Notably, Arabica prices have dropped below Robusta prices. Accordingly, the price of Arabica at the farm was 305 rupees/kg on March 23. Although the Arabica variety has always commanded high prices in the market, the Robusta variety saw an increase for the first time due to low supply.

Farmers suspect that output could fall by 25% to 30% next year due to a lack of backup water sources in many Indian Robusta growing regions.

Thus, world coffee prices on 03/26/2024 increased quite sharply compared to yesterday.

Coffee prices on March 26 in the country

The domestic market price on March 26 increased sharply to VND 1,200/kg compared to yesterday.

Specifically, in Lam Dong province, 3 districts of Di Linh, Bao Loc and Lam Ha are trading at the same price level of VND 96,000/kg.

In Dak Lak, Cu M'gar district today is purchasing at VND 96,400/kg. Meanwhile, Ea H'leo and Buon Ho districts are trading at VND 96,300/kg.

In Dak Nong province, traders Gia Nghia and Dak R'lap are trading at VND 96,500 and VND 96,400/kg, respectively. 

In Gia Lai province, Chu Prong district is trading at VND 96,300/kg, while Pleiku and La Grai are both maintaining the price of VND 96,200/kg.

The purchasing price in Kon Tum today is VND 96,300/kg.

Domestic coffee prices today increased rapidly and stood firmly above the threshold of VND 96,000/kg. Currently, the price of this agricultural product has risen higher than the price of pepper - this is shocking to everyone participating in the market.

Thai Nhu Hiep - Vice President of Vicofa commented that the global market is in a period of price fever, focusing on Robusta - the product for which Vietnam is the number 1 global supplier.

The current sudden increase in the price of this agricultural product is due to a decrease in Robusta output of nearly 20%, partly due to the influence of climate change and the strong impact of the El Nino phenomenon.

Thus, the domestic coffee price on 03/26/2024 is trading around the threshold of VND 96,000 - 96,500/kg.