Coffee prices on 08/01/2024: global market slightly declines

Coffee prices on August 1 globally

On the global market, both the London and New York exchanges saw slight declines on August 1.

On the London exchange, Robusta coffee prices for September 2024 delivery decreased by $ 5, reaching $ 4,261/ton. Prices for November 2024 delivery fell slightly by $ 2, settling at $ 4,116/ton.

Meanwhile, on the New York exchange, Arabica coffee prices for September 2024 delivery dropped by 1.6 cents, down to 229.20 cents/lb. Prices for December 2024 delivery decreased slightly by 1.45 cents, standing at 228.15 cents/lb.

Today global coffee prices slightly decreased due to improved supply from Brazil and minimal market disruptions following the Fed's decision to keep the benchmark interest rate unchanged for the eighth consecutive time. However, the Fed has also forecasted a potential adjustment in September.

Forecasts of rain in the coming months have alleviated concerns about Arabica supply, although prices remain at record highs for this time of year.

Positive factors supporting the market include lower coffee exports from Vietnam last weekend, which helped prevent further declines in Robusta prices, and reports of lower rainfall in Brazil.

In mid-July 2024, Robusta and Arabica prices on the global market trended upward due to technical factors rather than fundamental information impacts.

On July 19, Robusta prices on the London exchange for September 2024, November 2024, January 2025, and March 2025 delivery increased by 3%, 3.4%, 3.7%, and 3.8%, respectively, compared to July 9. On the New York exchange, Arabica prices for September 2024, December 2024, March 2025, and May 2025 delivery increased by 2.8%, 3.1%, 3.4%, and 3.3%, respectively, compared to July 9.

On the BMF exchange in Brazil, Arabica prices for July 2024 and December 2024 delivery increased by 3.2% and 3.8%, respectively, compared to July 9. Prices for September 2024 and March 2025 delivery both increased by 3.6% compared to July 9.

The USDA has forecasted Brazil's coffee production for the 2024/25 crop year at 69.9 million bags (60kg/bag), up 5.4% from the 2023/24 crop year due to expected favourable weather conditions. Arabica production is expected to increase by 7.3%, reaching 48.2 million bags, while Robusta production is projected to rise by 1.4%, reaching 21.7 million bags.

Thus, global coffee prices on 08/01/2024, have experienced slight fluctuations compared to yesterday.

Coffee prices on August 01 domestically

In the domestic market, coffee prices on August 1, remain stable compared to yesterday.

Specifically, in Lam Dong province, the three districts of Di Linh, Bao Loc, and Lam Ha are trading at the same price of VND 123,000/kg.

In Dak Lak province, Cu M'gar district is purchasing coffee at VND 123,500/kg today, while Ea H'leo and Buon Ho districts are trading at VND 123,400/kg.

In Dak Nong province, traders in Gia Nghia and Dak R'lap are trading coffee at VND 123,600/kg and VND 123,500/kg, respectively.

In Gia Lai province, Chu Prong district is trading coffee at VND 123,500/kg, while Pleiku and La Grai are maintaining the price of VND 123,400/kg.

In Kon Tum province, the purchase price today is VND 123,400/kg.

Today domestic coffee prices have remained stable, with the highest price reaching VND 123,600/kg. Similarly, domestic pepper prices have also remained unchanged.

Thus, domestic coffee prices on 08/01/2024, are trading around the range of VND 123,000 - 123,600/kg.

$ 1 = VND 25.030 - Source: Vietcombank.