Coffee prices on 10/08/2024: Continue to decline sharply

Coffee prices on October 8 globally

On the global markets, both the London and New York exchanges saw a sharp decline on October 8.

Specifically, Robusta prices on the London exchange for November 2024 delivery dropped by $ 199 (equivalent to 3.93%), reaching $ 4,868/ton. The January 2025 contract also fell sharply by $ 199 (equivalent to 4.1%), at 4,660 USD/ton.

Meanwhile, on the New York exchange, Arabica prices for December 2024 delivery plunged by 12.7 cents (equivalent to 4.93%), to 244.65 cents/lb. The March 2025 contract also dropped by 12.3 cents (equivalent to 4.81%), settling at 243.35 cents/lb.

Coffee prices on October 8 globally

Global coffee prices continued to fall sharply today due to the influence of three main factors:

• The USD remained strong as tensions in the Middle East escalated. At the time of the survey, the DXY index, which measures the USD's movement against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF), stood at 102.43.
• The International Coffee Organization (ICO) reported that global exports in August 2024 increased by 6.5% compared to the same period last year, reaching 10.92 million bags. Additionally, rain in Brazil is currently benefiting coffee plants, providing favourable conditions for blooming. Forecasts indicate that rain will continue through next week, easing concerns about the upcoming harvest.
• On October 2, the European Commission (EC) decided to delay the enforcement of the Anti-Deforestation Law by one year, pushing it to the end of 2025. This decision triggered a wave of sell-offs on both exchanges, causing coffee prices to plummet.

Thus, global coffee prices on 10/08/2024, dropped significantly compared to the previous day.

Coffee prices on October 8 domestically

In the domestic market, coffee prices today decreased by more than VND 1,000 compared to yesterday.

Specifically, in Lam Dong province, the districts of Di Linh, Bao Loc, and Lam Ha are trading at VND 114,500/kg.

In Dak Lak, Cu M'gar district is purchasing coffee at VND 115,100/kg, while Ea H'leo and Buon Ho districts are trading at VND 115,000/kg.

In Dak Nong province, traders in Gia Nghia and Dak R'lap are purchasing coffee at VND 115,100/kg and VND 115,000/kg, respectively.

In Gia Lai province, Chu Prong district is trading at VND 115,000/kg, while Pleiku and La Grai both hold at VND 115,000/kg.

In Kon Tum, the purchase price today is VND 115,000/kg.

Domestic coffee prices today continued to drop significantly, bringing this commodity down to around VND 115,000/kg.

The export value of coffee over the first nine months of 2024 reached $ 4.37 billion, surpassing the $ 4.24 billion of the entire year of 2023.

The Ministry of Agriculture and Rural Development (MARD) forecasts that coffee exports for the whole of 2024 will reach $ 5 billion, or even $ 5.5 billion. This would mark a new record, the highest export value of coffee ever recorded in Vietnam.

According to Nguyen Nam Hai, Chairman of the Vietnam Coffee-Cocoa Association (VICOFA), the most important factor driving coffee prices higher is the sharply increasing demand for Robusta beans worldwide, while supply is declining, causing prices to continuously rise to record levels.

Robusta is the main coffee crop of Vietnam, accounting for 94% of the country's coffee-growing area.

Thus, on 10/08/2024, domestic coffee prices are trading around VND 114,500 - 115,100/kg.

$ 1 = VND 24.635 - Source: Vietcombank.