Coffee prices on 10/28/2023: The market price decreased slightly

Coffee prices on 10/28 in the world

Around the world, the London and New York exchange prices on October 28 simultaneously decreased slightly.

In particular, the price of Robusta on the London exchange for delivery in November 2023 decreased by $ 37; down to $ 2,383/ton. And the January 2024 delivery term on this exchange decreased by $ 30; at $ 2,355/ton.

On the New York exchange, the price of Arabica delivered in December 2023 decreased slightly by 0.25 cents; down to 160.95 cents/lb. And the March 2024 delivery term decreased by 0.4 cents; at 160.50 cents/lb.

World coffee prices today continue to decline in the context that hedge funds are still selling strongly. Favourable weather information in key coffee-growing areas of Brazil has caused the above situation.

The report shows that inventories on the London exchange increased sharply, prompting funds and speculators to continue liquidating net positions that were overbought 2 weeks ago. 

Thus, world coffee prices on 10/28/2023 continued to decrease slightly compared to yesterday.

Coffee prices on 10/28 in the country

The domestic market on October 28 decreased by VND 200/kg compared to yesterday.

Specifically, in 3 districts of Di Linh, Bao Loc and Lam Ha of Lam Dong province are trading at the same level of VND 58,800/kg. 

In Dak Lak, Cu M'gar district today is purchasing at VND 59,600/kg. Ea H'leo and Buon Ho districts are trading at a price of VND 59,500/kg. 

In Dak Nong province, traders Gia Nghia and Dak R'lap are purchasing at VND 59,600 and VND 59,500/kg, respectively.

In Gia Lai, Chu Prong district is trading at VND 59,500/kg, while Pleiku and La Grai are maintaining the same price at VND 59,200/kg.

In Gia Lai province, today's coffee price is VND 59,500/kg (Chu Prong), and the same trading price in Pleiku and La Grai is VND 59,400/kg.

The purchasing price in Kon Tum today is VND 59,200/kg.

Domestic coffee prices have decreased for the fourth consecutive day, thereby falling closer to the threshold of VND 59,000/kg.

The 2022/23 crop year is considered to be a year of "bad crop, good price" for the coffee industry, with an estimated output of only about 1.5 - 1.6 million tons, decreased by 10 - 15% compared to the previous crop year due to unfavourable weather and the wave of crop shifting to fruit trees. 

Shrinking output combined with low reserves are the main reasons leading to a decrease in the export volume of this agricultural product compared to the previous crop year. But in return, the price of this item has continuously increased and reached its highest level in the past 30 years. 

Currently, localities have begun the early ripening harvest of the 2023/24 crop year. This can help increase supply for export activities in the near future. 

Many predictions say that this year's crop in Vietnam will continue to reduce production. Therefore, the risk of long-term supply shortages is still very worrying, and reserves are forecast to fall to very low levels after the 2024 crop.

Thus, the domestic coffee price on 10/28/2023 is trading around the threshold of VND 58,800 - 59,600/kg.

$ 1 = VND 24,360 - Source: Vietcombank