Coffee prices on 08/23/2024: Returning to a sharp decline

Coffee prices on August 23 globally

Globally, both the London and New York exchanges saw declines on August 23.

Specifically, Robusta prices on the London exchange for September 2024 delivery dropped by $ 51 to $ 4,903/ton. The November 2024 delivery fell by $ 58, reaching $ 4,574/ton.

On the New York exchange, Arabica prices for September 2024 delivery decreased significantly by 6.35 cents to 242.90 cents/lb. The December 2024 delivery fell by 5.85 cents to 241.20 cents/lb.

Coffee prices worldwide today have turned sharply lower after a period of historic increases.

Mr Carlos Mera, Director of Agricultural Commodity Market Research at Rabobank, assessed that Vietnam's production "is not a major disappointment," as the decline was only 5% more than expected. However, Brazil's coffee harvest has been low in recent years, leading to a significant reduction in inventory.

Delays in transportation have added another layer of uncertainty. Shipping companies have had to alter routes, avoiding the Suez Canal due to tensions in the Red Sea region.

For European buyers, the EU Deforestation Regulation (EUDR) is also a significant hurdle. Import companies are accelerating purchases and increasing stockpiles before the regulation takes effect at the end of this year.

All these factors have contributed to the high prices of this commodity. Mera noted: "We expect prices to remain volatile in 2024" before declining in 2025 due to an expected favourable harvest in Brazil.

Charles Hart, Senior Commodity Analyst at BMI, stated that commodity prices are currently more sensitive to news due to tight supply. He also noted that the La Niña weather phenomenon, which brings more rain, coinciding with the coffee harvest in Vietnam at the end of this year, serves as a "positive signal for the market."

Thus, global coffee prices on 08/23/2024, have sharply decreased compared to yesterday.

Coffee prices on 08/23/2024 domestically

In the domestic market, coffee prices on August 23, remain stable compared to yesterday.

Specifically, in Lam Dong province, the districts of Di Linh, Bao Loc, and Lam Ha are trading at VND 119,000/kg.

In Dak Lak, the district of Cu M'gar is buying at VND 119,700/kg, while the districts of Ea H'leo and Buon Ho are trading at VND 119,600 VND/kg.

In Dak Nong province, traders in Gia Nghia and Dak R'lap are trading at VND 119,800 and VND 119,700/kg, respectively.

In Gia Lai province, the district of Chu Prong is trading at VND 119,700/kg, while Pleiku and La Grai are holding steady at VND 119,600/kg.

In Kon Tum, the buying price today is VND 119,600/kg.

Coffee prices in the domestic market today have remained stable, contrasting with the sharp decline in the global market. Currently, this commodity is approaching the VND 120,000/kg mark.

Thus, domestic coffee prices on 08/23/2024, are trading around VND 119,000 - 119,800/kg.

$ 1 = VND 24.780 - Source: Vietcombank.