Coffee prices on 05/07/2024: Continuing downward trend

Coffee prices on May 7 globally

On the global market, both the London and New York exchanges continue to see significant declines.

Robusta prices on the London exchange for July 2024 delivery are hovering around $ 3,541/ton. The September 2024 delivery remains steady at $ 3,470/ton.

Meanwhile, Arabica prices on the New York exchange for July 2024 delivery have dropped sharply by 5.6 cents to 195.15 cents/lb. The September 2024 delivery also decreased by 5.15 cents to 193.95 cents/lb.

World coffee prices today remained flat on the London exchange but continued to experience sharp declines on the New York exchange.

According to the ICO, in the first half of April, the price of this agricultural commodity surged by 21.8%; from 193.4 to 235.5 US cents/pound due to concerns about heavy rains in the Minas Gerais state of Brazil that could affect the supply for the 2024-2025 crop year.

Meanwhile, Vietnam continues to face difficulties in the supply source as the harvest volume has decreased continuously in the 2022/23 and 2023/24 crop seasons.

However, in the last days of the month, the price of this agricultural commodity reversed course and sharply dropped to 218.1 US cents/pound due to the impact of key factors such as: the recovery of inventory on the ICE exchange; profit-taking in the paper market (the net long position of the European market on the ICE exchange decreased by 5,042 lots from April 16 to April 23) and the strengthening of the USD driving selling activities, while the Brazilian real weakened (from 5.3 Real/USD on April 16 to 5.1 Real/USD on April 30).

The overall assessment shows that all coffee groups saw significant increases in April 2024. Specifically, Brazilian Arabica surged by 17.8% to an average of 218.8 US cents/pound. The prices of Colombian Arabica and Other Arabica increased by 15% and 14.8% respectively, reaching 241.8 and 239.7 US cents/pound. Meanwhile, the price of Robusta surged by 16.8% to 195.7 US cents/pound - the highest level in 45 years, since July 1979.

Thus, on 05/07/2024, global coffee prices continued the downward trend compared to the previous day.

Coffee prices on May 7 domestically

Coffee prices in the domestic market on May 7 are still experiencing significant declines compared to yesterday.

Specifically, in Lam Dong province, the districts of Di Linh, Bao Loc, and Lam Ha are trading at the same level of VND 99,000/kg.

In Dak Lak province, the district of Cu M'gar is currently purchasing at VND 100,000/kg. Meanwhile, the districts of Ea H'leo and Buon Ho are trading at VND 99,900/kg.

In Dak Nong province, traders in Gia Nghia and Dak R'lap are trading at VND 100,500 and VND 100,400/kg, respectively.

In Gia Lai province, the district of Chu Prong is trading at VND 99,100/kg, while Pleiku and La Grai are maintaining the same price of VND 99,000/kg.

The purchase price in Kon Tum province today is VND 99,000/kg.

The domestic coffee price today dropped by another VND 1,000, posing a risk of not being able to maintain the threshold of VND 100,000/kg.

On March 26, the Ministry of Agriculture and Rural Development announced that the country's crop output for the 2023/24 season could decrease by 20%, reaching a record low of 1.47 million tons due to drought.

This information has propelled the price of Robusta in the domestic market in Vietnam from an average of VND 80,000/kg (on February 15) and VND 61,000/kg (in mid-November 2023) to over VND 132,000/kg on April 26.

However, as we enter May 2024, the price of this agricultural product has been continuously declining. In just the past week, the domestic coffee price has dropped by as much as VND 30,000/kg, and this trend shows no signs of stopping.

Thus, the domestic coffee price on 05/07/2024, is trading around the range of VND 99,000 - 100,500/kg.

$ 1 = VND 25.125 - Source: Vietcombank