Arabica coffee prices approach $8,600/ton mark

The Vietnam Commodity Exchange (MXV) said that buying power returned to dominate the world raw material market in yesterday's trading session (May 6). At the close, the MXV-Index recovered more than 1.2% to 2,179 points. Notably, in the industrial raw material market, Arabica coffee prices had a slight recovery session amid less positive weather developments. Meanwhile, the metal market also recorded positive signals with 8 out of 10 commodities increasing in price.

Giá cà phê Arabica tiền sát mốc 8.600 USD/tấn

MXV-Index

Coffee prices move in opposite directions

According to MXV, cocoa stood out on the industrial raw material price list in yesterday's trading session. Closing, the price of this item jumped 4.78% to nearly 9,000 USD/ton, thanks to the weakening of the USD, which promoted short-covering activities in the futures market. The market was also affected by concerns about the mid-season harvest in Ivory Coast when late rains limited crop growth. According to Rabobank, this year's mid-season crop output in Ivory Coast is expected to reach only 400,000 tons, down 9% compared to the same period last year.

Meanwhile, the coffee market has seen mixed developments between the two commodities, as supply-demand and weather factors continue to have a strong impact on prices.

At the close of the session, the price of Arabica coffee for July contract increased by 0.41% to 8,595 USD/ton, while Robusta coffee decreased by 0.66% to 5,256 USD/ton.

Industrial raw material price list

According to Somar Meteorologia, Minas Gerais, Brazil’s largest Arabica growing region, received just 1.5 mm of rain in the week ending April 26, equivalent to 21% of the historical average and lower than expected. The dry weather in Brazil could affect the country’s coffee production in the coming season, thereby boosting buying in the market.

Giá cà phê Arabica tiến sát mốc 8.600 USD/tấn

Arabica coffee price for July contract increased 0.41% to 8,595 USD/ton

In addition, another factor that also contributed to the impact on coffee prices in yesterday's session came from Sumatra Island (Indonesia). Robusta coffee exports in March in this region reached more than 313,720 bags, a sharp increase of 476.8% over the same period last year, bringing the island's total Robusta exports in the 2024-2025 crop year to more than 1.6 million bags, an increase of 80% over the same period last year. In addition, USDA has just raised its forecast for coffee production in Guatemala - the world's 4th largest Arabica exporter - to 3.53 million bags for the 2024-2025 crop year, an increase of 3.1% compared to the previous forecast.

The amount of certified wet-processed Arabica coffee stored on the New York Stock Exchange as of May 6 continued to increase by 6,252 60kg bags, bringing the total inventory of this item to over 838,380 bags. Of which, 776,750 bags are stored in Europe, accounting for 92.6% of the total inventory, and 7.4% is stored in the US.

In the domestic market, the price of green coffee beans in the Central Highlands on May 7 decreased slightly compared to yesterday, fluctuating between 127,500 - 128,100 VND/kg. Specifically, in Lam Dong, the price of coffee today was purchased at 127,500 VND/kg. In Dak Lak and Dak Nong, the price of coffee today was 128,000 VND/kg. In Gia Lai province, the price of coffee today was 127,800 VND/kg.

Metal prices increased across the board

According to MXV, the metal market experienced a positive trading session yesterday when 8 out of 10 items in this group increased in price, mainly due to increased demand for shelter and concerns about supply shortages in the market.

At the end of the session, silver price jumped 2.79% to 33.38 USD/ounce, while platinum reversed and recovered strongly 3.26%, reaching 992.1 USD/ounce.

Metal price list

Money has been pouring into precious metals as demand for safe havens increases amid global financial turmoil. According to the Institute of International Finance (IIF), total global debt increased by about $7.5 trillion in the first quarter alone, to a record of more than $324 trillion. China, France and Germany were the three countries that contributed the most to this increase. The surge in global debt pressure has raised concerns about financial instability, prompting investors to seek safe havens such as precious metals.

In addition, the US trade deficit in March increased to $140.5 billion, far exceeding the previous month's $123.2 billion, mainly due to flat exports while imports increased sharply to $419 billion. This development reflects that domestic demand in the US remains high but export momentum is weakening, increasing concerns about the economic outlook and creating more momentum for safe-haven flows into precious metals.

In the base metals group, COMEX copper prices increased by 1.68% to $10,533/ton, amid the risk of a local supply shortage in the US as Canadian businesses - the second largest copper supplier to the US - began to withdraw from this market to seek opportunities in other regions. This trend raised concerns about the risk of narrowing copper supply in the US in the context of domestic production capacity not meeting demand.

Iron ore prices also rose 0.98% to $97.51 a tonne, thanks to positive consumption signals in China. According to the China Iron and Steel Association (CISA), as of April 30, the total inventory of five major finished steel products in 21 major cities reached 8.85 million tonnes, down 4.6% from April 20. Notably, inventories of wire rod and rebar – two products that closely reflect construction demand – fell sharply by 7.5% and 5.5%, respectively, indicating that actual consumption is showing clear signs of improvement.

Prices of some other goods