Coffee prices on 10/02/2024: The market turns downward

Coffee prices on October 2 globally

Globally, both the London and New York exchanges experienced significant declines on October 2.

On the London exchange, the price of Robusta for November 2024 delivery dropped by $ 52(equivalent to 0.96%), reaching $ 5,445/ton. Meanwhile, the price for January 2025 delivery fell by $ 46 (equivalent to 0.88%), to $ 5,179/ton.

On the New York exchange, Arabica for December 2024 delivery decreased by 6.1 cents (equivalent to 2.26%), settling at 264.15 cents/lb. For March 2025 delivery, the price dropped by 5.8 cents (equivalent to 2.16%), to 262.15 cents/lb.

Global coffee prices today experienced a simultaneous decrease on both exchanges due to strong liquidation sales. According to experts, the concerns over the next coffee crop in Brazil eased as drought information in key coffee-growing regions diminished, helping reduce market anxiety about production.

The EU's anti-deforestation regulation is set to take effect in December 2024. This regulation requires importers to prove that products like coffee, beef, cocoa, and wood do not contribute to deforestation. However, Germany's Ministry of Agriculture is calling for a six-month delay due to a lack of detailed implementation guidelines, while Brazil and Indonesia have also opposed the regulation.

According to sources, agreements were signed by StoneX and a unit of Olam Group Ltd. involving coffee produced in Brazil and Vietnam. Coffee that meets the EUDR requirements is sold at a premium of 3-5 cents over New York futures contracts for shipments next year.

While some products from Brazil, such as livestock and soybeans, are linked to Amazon deforestation, coffee is grown far from this region. The state of Minas Gerais, located in southeastern Brazil, is the country's largest coffee-growing area.

Thus, global coffee prices on 10/02/2024, have rebounded compared to yesterday.

Coffee prices on October 2 domestically

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

Specifically, in Lam Dong province, Di Linh, Bao Loc, and Lam Ha districts are trading at VND 120,800/kg.

In Dak Lak province, Cu M'gar district is buying coffee at VND 121,800/kg, while Ea H'leo and Buon Ho districts are trading at VND 121,700/kg.

In Dak Nong province, traders in Gia Nghia and Dak R'lap are transacting at VND 121,000/kg and VND 120,900/kg, respectively.

In Gia Lai province, Chu Prong district is trading at VND 121,000/kg, while Pleiku and La Grai are holding steady at VND 121,000/kg.

In Kon Tum province, today's purchase price is VND 121,000/kg.

Domestic coffee prices today also reversed, causing this agricultural product to fail to maintain the VND 122,000/kg mark.

Thus, domestic coffee prices on 10/02/2024, are trading around the range of VND 120,800 - 121,800/kg.

$ 1 = VND 24.450 - Source: Vietcombank.