Coffee prices on 05/18/2024: Arabica and Robusta increase sharply

Coffee prices on May 18 globally

Globally, coffee prices on both the London and New York exchanges saw a significant rise on May 18.

On the London exchange, the price of Robusta for July 2024 delivery increased by $ 98, reaching $ 3,518/ton. The September 2024 delivery also saw a strong rise of $ 97, standing at $ 3,518/ton.

On the New York exchange, the price of Arabica for July 2024 delivery surged by 8.7 cents, reaching 206.60 cents/lb. The September 2024 delivery increased sharply by 8.5 cents, at 205.45 cents/lb.

Today, global coffee prices rose by nearly 3% on the London exchange and surged more than 4.3% on the New York exchange.

The increasing expectation that the Fed will cut interest rates soon, following the release of lower-than-expected April CPI data in the US, has weakened the USD, providing a boost for coffee prices to recover strongly.

Additionally, erratic weather has raised concerns about production impacts in leading coffee-producing countries.

Furthermore, Vietnam, the world's largest Robusta exporter, exported only 152,000 tons in April, a 19.5% decrease compared to the same period last year, reducing the supply. Experts estimate that Vietnam's coffee stock is currently around 300,000 tons, with new supplies not expected until October.

Thus, global coffee prices on 05/18/2024, have increased significantly compared to yesterday.

Coffee prices on May 18 domestically

In the domestic market, coffee prices on May 18 increased by VND 2,600/kg compared to yesterday.

Specifically, in Lam Dong province, the districts of Di Linh, Bao Loc, and Lam Ha are trading at VND 103,500/kg.

In Dak Lak, Cu M'gar district is purchasing at VND 104,100/kg today, while Ea H'leo and Buon Ho districts are trading at VND 104,000/kg.

In Dak Nong province, traders in Gia Nghia and Dak R'lap are trading at VND 104,200 and VND 104,100/kg, respectively.

In Gia Lai province, Chu Prong district is trading at VND 103,800/kg, while Pleiku and La Grai are maintaining a price of VND 103,700/kg.

In Kon Tum province, the purchase price today is VND 103,800/kg.

Today, domestic coffee prices continue their upward trend, increasing by over VND 2,000. This surge has pushed the price of this agricultural product above the VND 104,000/kg mark.

According to MARD, Vietnam's coffee production for the 2023/24 crop year could decrease by 20%, falling to 1.47 million tons, the lowest level in four years due to drought. This news has driven up the price of Robusta in the domestic market significantly.

Data from the General Department of Vietnam Customs shows that in the first four months of the year, Vietnam exported 737,797 tons of coffee, earning a record value of $ 2.5 billion. This represents a 2.8% increase in volume and a substantial 53.4% increase in value compared to the same period last year, thanks to higher prices.

The trend of rising coffee prices continued through April and only started to decline in May 2024.

Thus, as of 05/18/2024, domestic coffee prices are trading around VND 103,500 - VND 104,200/kg.

$ 1 = VND 25.220 - Source: Vietcombank