Coffee prices on 05/15/2024: surging both globally and domestically

Coffee prices on May 15 globally

On the global market, both the London and New York exchanges saw increases on May 15.

Specifically, the Robusta price on the London exchange for July 2024 delivery surged by $ 34, reaching $ 3,433/ton. Meanwhile, the September 2024 futures contract increased by $ 38 to reach $ 3,364/ton.

On the New York exchange, the Arabica price for July 2024 delivery soared by 4.80 cents to reach 200.85 cents/lb. Additionally, the September 2024 futures contract rose by 4.65 cents to reach 199.90 cents/lb.

Global coffee prices surged significantly today, partly due to the weakening of the USD. However, trading volume on the exchange decreased significantly. Experts speculate that speculative buying has not yet occurred following the recent strong sell-off.

Furthermore, the weakened US dollar against other currencies also contributed to the increase in commodity prices. At the time of the survey, the DXY index, which measures the fluctuation of the greenback against 6 major currencies (EUR, JPY, GBP, CAD, SEK, CHF), fell to 104.96.

The US dollar reversed its decline in the latest trading session, following the unexpected increase in US production prices in April 2024, amid strong increases in commodity and service costs, indicating that inflation remains high in early Q2.

The Foreign Agricultural Service (FAS) of the US Department of Agriculture predicts that the Arabica production in the 2023/24 season in Brazil will increase by 12.8% compared to the same period, reaching 44.9 million bags due to higher productivity and increased planting area.

The FAS also forecasts that the production of this commodity in the 2023/24 season in Colombia - the world's second-largest Arabica producer - will increase by 7.5% compared to the same period, reaching 11.5 million bags.

Currently, the market is closely monitoring the weather in Vietnam and the harvesting progress in Indonesia and Brazil.

Thus, the world coffee prices on 05/15/2024 surged significantly compared to yesterday.

Coffee prices on May 15 domestically

In the domestic market, coffee prices surged by VND 1,800/kg 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 100,700/kg.

In Dak Lak province, the district of Cu M'gar is purchasing at VND 101,800/kg today. Meanwhile, the districts of Ea H'leo and Buon Ho are trading at VND 101,700/kg.

In Dak Nong province, traders in Gia Nghia and Dak R'lap are trading at VND 101,700 and VND 101,600/kg, respectively.

In Gia Lai province, the district of Chu Prong is trading at VND 101,200/kg, while Pleiku and La Grai are maintaining the price at VND 101,100/kg.

The purchase price in Kon Tum province today is VND 101,100/kg.

The price of coffee in the domestic market today surged by nearly VND 2,000, bringing the commodity close to the threshold of VND 102,000/kg.

According to data from the General Department of Customs, Vietnam exported 737,797 tons of coffee in the first 4 months of the year, fetching a record value of $ 2.5 billion, up 2.8% in volume and a remarkable 53.4% in value compared to the same period last year, thanks to the high prices.

However, the volume of exports of this commodity has been gradually decreasing in recent months. Specifically, in April alone, it reached only 152,073 tons, valued at nearly $ 573 million, down 19.5% in volume and 14.7% in value compared to the previous month. Compared to the same period last year, there was a decrease of 7% in volume but an increase of 43.6% in value.

This marks the third consecutive month of decreased coffee exports compared to the same period last year, indicating that the current crop supply may be gradually depleting.

By the end of the first 7 months of the 2023/24 crop (from October 2023 to April 2024), coffee exports reached over 1.1 million tons, down 1.5% compared to the same period of the 2022-2023 crop. With this result, Vietnam has exported about 65 - 70% of the total projected output of around 1.6 - 1.7 million tons for the current crop.

In April, the average export price of Vietnamese coffee reached $ 3,768/ton, up 6% compared to the previous month and up 54.5% compared to the same period last year. Over the first 4 months of the year, the export price increased by 49.1% to an average of $ 3,389/ton.

Thus, the price of coffee in the domestic market on 05/15/2024 is trading around the range of VND 100,700 - 101,800/kg.