Coffee prices on 03/29/2024: The market price turned down sharply

Coffee prices on March 29 in the world

Around the world, the London and New York exchange prices on March 29 simultaneously decreased.

In particular, the price of Robusta on the London exchange for delivery in May 2024 decreased by up to $ 80; down to $ 3,479/ton. And the term for delivery in July 2024 increased sharply by $ 71; at $ 3,396/ton.

On the New York exchange, the price of Arabica delivered in May 2024 lost up to 1.8 cents; to 188.85 cents/lb. On the New York exchange, the price of Arabica delivered in May 2024 lost up to 1.8 cents; to 188.85 cents/lb.

Worldcoffee prices today turned down sharply as investors sold off short-buying contracts before preparing for a long holiday. In particular, the price of Robusta on the London exchange has lost more than 2%. 

The Ministry of Agriculture and Rural Development expects that Vietnam's coffee output in the 2023/24 crop year may decrease by about 20%; down to 1.472 million tons - the lowest level in 4 years - due to drought. 

Meanwhile, Marex Group forecasts the global Robusta deficit in 2024/25 to be 2.7 million bags due to reduced production in leading producer Vietnam. 

Some retailers are replacing Arabica with Robusta to avoid skyrocketing retail prices. Growing demand is tightening Robusta's supply, leading to higher prices.

Thus, world coffee prices on 03/29/2024 decreased sharply compared to yesterday.

Coffee prices on March 29 in the country

The domestic market on March 29 decreased sharply by VND 1,100/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 98,200/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 for VND 98,500/kg. 

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

In Gia Lai province, Chu Prong district is trading at VND 98,500/kg, while Pleiku and La Grai are maintaining the same price at VND 98,400/kg. 

The purchasing price in Kon Tum today is VND 98,400/kg.

Domestic coffee prices turned down sharply today after rising sharply to a record high yesterday. However, the price of this item remains quite high, still close to the threshold of VND 99,000/kg.

Previously, the increase in this agricultural product came from Vicofa predicting that our country's 2023/24 export season would decrease by 20% compared to the previous crop year, down to 1.336 million tons due to dry weather reducing coffee productivity and output.

According to Mr. Le Duc Huy - General Director of 2/9 Dak Lak Import-Export Company Limited (Simexco Dak Lak), with the current high price situation, the unit will only receive more orders if there are positive signs from the supply from farmers. 

However, the amount stored by the people has begun to run out and is scarce. Considering the unfavourable weather situation for crops, it is forecasted that in the upcoming crop season, the output of this agricultural product will decrease, leading to scarce supply, this is the biggest concern of businesses.

Thus, the domestic coffee price on 03/29/2024 is trading around the threshold of VND 98,200 - 98,600/kg.