Coffee prices on 05/22/2024: Simultaneous sharp increase

Coffee prices on May 22 globally

On the global stage, the coffee prices on the London and New York exchanges have surged.

Specifically, the price of Robusta coffee on the London exchange for July 2024 delivery increased by $ 235, reaching $ 3,734/ton. The September 2024 delivery rose by $ 237, reaching $ 3,673/ton.

Meanwhile, on the New York exchange, the price of Arabica coffee for July 2024 delivery jumped by 10.5 cents, reaching 217.20 cents/lb. The September 2024 delivery rose by 10.25 cents, reaching 216 cents/lb.

Global coffee prices surged today as the belief that the Fed will cut interest rates in September 2024 gained traction.

U.S. inflationary pressure decreased for the first time this year in April 2024, raising expectations that it will continue to cool down, potentially prompting the Fed to cut interest rates as early as September.

Experts suggest that the current coffee market requires perspectives that go beyond mere production numbers and supply-demand factors. Reports of bumper crops or poor harvests often create market sentiment favouring either price speculation or selling pressure depending on whether prices are expected to rise or fall.

Specialists believe that in futures markets, price movements are significantly influenced by the Fed's monetary policy. The consistent price increase of agricultural commodities like coffee on the domestic market since the beginning of the 2023/24 season up to April 2024 has often been beyond the control of many professional exporters.

This situation can be attributed to insufficient and untimely capital and credit for purchasing, leading to price control falling into the hands of small-scale speculators rather than professional traders.

Thus, as of 05/22/2024, global coffee prices have risen significantly compared to the previous day.

Coffee prices on May 22 domestically

In the domestic market, coffee prices saw a sharp increase of VND 5,000/kg compared to the previous day.

Specifically, in Lam Dong province, the districts of Di Linh, Bao Loc, and Lam Ha are all trading at VND 108,000/kg.

In Dak Lak province, Cu M'gar district is purchasing at VND 108,500/kg today. Meanwhile, Ea H'leo and Buon Ho districts are trading at VND 108,400/kg.

In Dak Nong province, traders in Gia Nghia and Dak R'lap are trading at VND 108,600/kg and VND 108,500/kg, respectively.

In Gia Lai province, Chu Prong district is trading at VND 108,300/kg, while Pleiku and La Grai are maintaining a price of VND 108,200/kg.

Finally, in Kon Tum, the purchase price today is VND 108,300/kg.

Today, domestic coffee prices have surged significantly, bringing this agricultural product closer to the VND 109,000/kg mark.

Thus, as of 05/22/2024, domestic coffee prices are trading around VND 108,100 - 108,600/kg.

$ 1 = VND 25.236 - Source: Vietcombank