Coffee prices on 06/12/2024: Decline continues

Coffee prices on June 12 globally

Globally, coffee prices on both the London and New York exchanges continued to decline on June 12.

Specifically, the price of Robusta on the London exchange for delivery in July 2024 decreased by $ 40, to $ 4,196/ton. And the September 2024 delivery fell slightly by $ 29, to $ 4,053/ton.

Meanwhile, on the New York exchange, the price of Arabica for delivery in July 2024 decreased by 0.85 cents, to 220.55 cents/lb. And the September 2024 delivery fell further by 0.55 cents, to 221.45 cents/lb.

World coffee prices today continued to decline slightly, in the context of the upcoming 2-day Fed meeting.

The Fed is expected to keep interest rates unchanged after the session. Economists are still closely watching for any clues about the timing of the first rate cut in four years. This information caused the USD to reach a 4-week high.

At the time of the survey, the DXY index, which measures the volatility of the greenback against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF), reached 105.25.

A strong USD and a weakened Brazilian Real have put pressure on the market. This agricultural product is also under pressure due to the faster-than-expected coffee harvest progress in Brazil, which promises to improve the supply that has been strained for a long time, especially for Robusta.

Thus, world coffee prices on 06/12/2024 simultaneously decreased slightly compared to yesterday.

Coffee prices on June 12 domestically

In the domestic market, coffee prices today, June 12th, continue to decrease 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 120,400/kg.

In Dak Lak province, the district of Cu M'gar is purchasing at VND 121,400/kg today. Meanwhile, the districts of Ea H'leo and Buon Ho are trading at VND 121,300/kg.

In Dak Nong province, traders in Gia Nghia and Dak R'lạp are respectively trading at VND 121,600 and VND 121,500/kg.

In Gia Lai province, the district of Chu Prong is trading at VND 121,400/kg, while Pleiku and La Grai districts are maintaining the same price of VND 121,300/kg.

The purchasing price in Kon Tum province today stands at VND 121,300/kg.

The domestic coffee price today further dropped by nearly VND 2,000, reaching the threshold of VND 121,000/kg.

Currently, domestic coffee is suffering as the price of black pepper has increased significantly in recent times. The domestic pepper price has surpassed VND 180,000/kg - doubling compared to the beginning of the year and exceeding all market participants' forecasts. The sharp rise in pepper has invisibly drained capital from the coffee market, causing it to lose its vibrancy.

However, the supply of Robusta coffee remains scarce. Distributors in Vietnam estimate that the next crop's output will decrease by 4-7% due to damage caused by drought conditions in March and April. Therefore, the upward trend in the medium and long term for coffee remains very high.

Thus, the domestic coffee price on 06/12/2024, is trading around the range of VND 120,400 - 121,600/kg.

$ 1 = VND 25.196 - Source: Vietcombank