The domestic price of coffee is around 120,000 – 121,200 VND/kg. The inventory of farmers has almost gone so the trading situation is not vibrant despite high prices. Robusta and Arabica prices on the two world exchanges simultaneously increased by more than 5% due to increased purchasing activity.
The coffee price on the world market today is increasing. Specifically, the price of Robusta online in London delivered in July 2024 was recorded at 4,120 USD/ton after increasing by 5.86%. The remaining terms all increased sharply. The price of Arabica delivered in July 2024 in New York was 230.95 US cents/pound after increasing 5.82%.
In the domestic market, coffee prices increased back to 120,000 VND/kg.
The coffee price was back to 120,000 VND/kg in the domestic market. Specifically, the highest trading level is 121,200 VND/kg, recorded in Dak Nong after an increase of 4,000 VND/kg. With the same increase, Dak Lak and Gia Lai adjusted the purchase price to 120,700 VND/kg. Traders in Lam Dong are buying coffee at 120,000 VND/kg, up 4,300 VND/kg.
Coffee prices have risen sharply, with Arabica rising to a one-month high and July’s Robusta returning to above 4,000 USD after nearly a month of losing this mark.
Analysts said that coffee prices are being influenced by forecasts of the US economy, causing speculators to boost purchases on the floors. The market is concerned about insufficient rainfall in Vietnam that could reduce the production of the new crop. Besides, in Brazil, there are initial reports of the heat wave continuing to pose a risk to coffee-growing areas in the 2024/25 season.
According to experts and growers, Brazil’s Robusta yield in 2024 will be lower than expected, only about 21-23 million bags. Along with this, coffee beans will be smaller due to being affected by extreme weather. Brazil’s coffee crop this year is important for global supply, as Vietnam has a lower harvest.
Brazil’s Arabica coffee production (about two-thirds of total production) looks better, as it is grown in areas less affected by the severe El Nino. It is forecast that in the short term, the world coffee market will not have strong fluctuations. The inventory of sorted Arabica coffee held on the New York market fell by a negligible 30 bags./.
