Coffee prices on 07/19/2024: The market declines globally

Coffee prices on July 19 globally

Globally, both the London and New York exchanges saw a decline in coffee prices on July 19.

On the London exchange, the price of Robusta for September 2024 delivery fell significantly by $ 91, reaching $ 4,479/ton. The November 2024 contract also dropped by $ 83, to $4,317/ton.

On the New York exchange, the price of Arabica for September 2024 delivery decreased by 2.25 cents, settling at 240.90 cents/lb. The December 2024 contract fell by 2.1 cents, at 239.35 cents/lb.

Global coffee prices today are declining on both the London and New York exchanges. This drop is due to the strengthening of the USD following better-than-expected data on the U.S. labour and manufacturing markets.

As of the latest survey, the DXY Index, which measures the fluctuation of the USD against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF), has risen to 104.24.

Experts forecast that coffee prices on both exchanges will continue to decline in the short to medium term due to the lack of factors to drive or maintain high price levels, especially given the unseasonably warm Winter in Brazil expected to last at least the next 10 days.

Thus, global coffee prices on 07/19/2024, have decreased significantly compared to yesterday.

Coffee prices on 07/19/2024 domestically

In the domestic market, coffee prices have dropped by VND 1,500 today compared to yesterday.

In Lam Dong province, the districts of Di Linh, Bao Loc, and Lam Ha are trading at VND 125,500/kg.

In Dak Lak, the district of Cu M'gar is purchasing at VND 126,100/kg, while Ea H'leo and Buon Ho are trading at VND 126,000/kg.

In Dak Nong, traders in Gia Nghia and Dak R'lap are buying at VND 126,100 and VND 126,000/kg, respectively.

In Gia Lai province, the district of Chu Prong is trading at VND 126,000/kg, while Pleiku and La Grai are maintaining a price of VND 125,900/kg.

In Kon Tum, the purchase price is VND 126,000/kg.

Coffee prices in the domestic market have dropped significantly today and are at risk of falling below VND 126,000/kg. Meanwhile, domestic pepper prices remain stable, ranging between VND 147,000 - VND 149,000/kg.

VICOFA forecasts a gradual decrease in Vietnam's coffee exports for the months of July to September due to diminishing supply. Supply is expected to increase again in October and November when the new harvest season begins.

However, the forecast suggests that Vietnam’s coffee production for the 2024/25 season will decrease by 15-20% compared to the previous season. This reduced production is likely to result in a decline in export activity and exacerbate the shortage of coffee supply in the market.

The latest statistics show that coffee exports in the first half of July 2024 have decreased by 40% in volume compared to the same period last year.

Thus, as of 07/19/2024, domestic coffee prices are trading around VND 125,500 - 126,100/kg.

$ 1 = VND 25.128 - Source: Vietcombank.