Compared to the peak in September, kernel coffee price in the domestic market was down by 15% to 58,000 VND/kg.
The domestic coffee price update on the morning of November 11 showed that this commodity is on track to drop sharply by 1,400-2,000 VND compared to the previous week and down 10,000 VND (15%) from its record peak in September.
Specifically, one kg of kernel coffee purchased in Gia Lai and Kon Tum costs 58,000 VND, Dak Nong 58,200 VND, and Lam Dong 57,600 VND.
Farmers harvest coffee in Kon Tum.
At fresh coffee purchasing establishments in Kon Tum, Gia Lai, and Dak Lak, the price also cooled down from 12,000/kg to 9,000-10,000 VND.
Ms. Hong, the owner of a purchasing establishment in Dak Lak, said that at the beginning of the season, the price dropped sharply, but this was still high compared to previous years. “Compared to last year, the purchasing volume at the beginning of this year decreased by 20%. Farmers are keeping their goods to wait for the price increases, ” Ms. Hong said.
Similarly, Mr. Thanh – the owner of a purchasing establishment in Gia Lai said that the coffee price has decreased for more than one week. Therefore, at his establishment, the purchase price of fresh and dried coffees decreased sharply compared to the previous week. “If in September and October, many factories and exporters pushed up prices, they now have lower demand than before,” Mr. Thanh said.
According to purchasing facilities, coffee prices decreased strongly due to the start of the harvest season. In addition, falling export prices have caused the prices of domestic goods to go down.
The leader of the Dak Lak Department of Agriculture and Rural said that kernel coffee price in the domestic market is declining due to the start of a new crop in November. Currently, demand for coffee in the world market is slowing down since concerns about the FED continuing to raise interest rates after Chairman Jerome Powell’s speech pushed the market into a negative context.
In addition, coffee production this year did not increase sharply but it was stable. In some coffee-producing countries, production is forecast to increase, causing domestic prices to adjust to the world.
At the end of the last trading session, Robusta coffee price in London delivered in January 2024 decreased by 9 USD/ton to 2,421 USD/ton; delivered in March 2024 decreased by 11 USD/ton to 2,375 USD/ton.
Compared to the peak in September, kernel coffee price in the domestic market was down 15%.
On the New York exchange, the price of Arabica coffee delivered in December declined by 4.3 cents/pound to 174.5 cents.
The National Federation of Coffee Growers (FNC) in Colombia reported coffee production in October reached 1.2 million bags. This was an increase of 269,000 bags equivalent to 30.29% over the same period last year. In Brazil, favorable weather is pushing Arabica prices down more than Robusta this weekend.
FNC aims to export 12 million bags in the coffee crop 2023/2024. It is more positive than the target of 116 million bags that the US Department of Agriculture (USDA) previously forecast.
Data from Customs showed that in 9 months of 2023, Vietnam’s coffee exports are estimated at 1.3 million tons and worth 3.16 billion USD. This is down 7.3% in volume but up 1.9% in value over the same period last year. For the type structure, the export of kernel coffee decreased compared to the same period in 2022, but the export of processed coffee increased.
According to enterprises, the price of kernel coffee in the domestic market this year is decreasing. However, this is still a good price range so farmers expect high profits.
Calculations from the Ministry of Agriculture and Rural Development show that coffee exports this year will reach about 1.72 million tons, worth 4.2 billion USD – a new record in turnover value thanks to an increase of 200 million USD compared to last year’s peak turnover./.