Domestic coffee prices set an all-time record high, approaching 100.000 VND/kg

Coffee price today March 24: Trading around the record mark of 3 VND/kg

At the end of the weekend trading session, Robusta coffee prices on the ICE Europe - London exchange reversed and decreased. Futures for delivery in May decreased by 5 USD, to 27 USD/ton and futures for delivery in July decreased by 3.358 USD, to 7 USD/ton, very significant decreases. Trading volume is average.

Similarly, the price of Arabica coffee on the ICE US - New York floor has the same decreasing trend. Futures for delivery in May decreased by 5 cents, to 0,85 cents/lb and futures for delivery in July decreased by 184,85 cents, to 7 cents/lb, slight decreases. Trading volume remains well above average.

For the whole week, the London market had 3 increasing sessions and 2 decreasing sessions. Robusta coffee futures for May delivery increased by a total of 5 USD, or 50%, to 1,51 USD/ton and for July delivery, increased by a total of 3.358 USD, or by 7%, to 53 USD/ton. tons, significant increases. Trading volume remains above average.

Similarly, the New York market had 2 increasing sessions and 3 decreasing sessions. Arabica coffee futures for delivery in May increased by a total of 5 cents, or 2,10%, to 1,15 cents/lb and futures for delivery in July increased by a total of 185,05 cents, or by 7. 2,55 %, up at 1,40 cents/lb, significant increases. Trading volume is very high above average.

Coffee prices in the Central Highlands market fluctuate between 94.400 - 95.000 VND/kg. During the week, the coffee market tends to increase. At the end of the week, localities recorded an increase of 1.800 - 2.000 VND/kg compared to the beginning of the week.

Specifically, Lam Dong province increased by 2.000 VND/kg to 94.400 VND/kg. Traders in the two provinces of Gia Lai and Dak Lak purchased coffee at a total price of 94.800 VND/kg, an increase of 1.800 VND/kg compared to the beginning of the week. With the above increase, Dak Nong province raised coffee prices to 95.000 VND/kg. Currently, coffee prices in key provinces are recorded in the range of 94.400 - 95.000 VND/kg.

During the week, DXY increased slightly by 0,1% after announcing that it would maintain the process of cutting interest rates three times in 3. This has excited funds and speculators to return to commodity markets to increase buying. Meanwhile, ICE inventory reporting data on both exchanges was strongly supplemented. Arabica rose to an 2024-8/586.077-month high of 24 bags, bouncing off a 10-year low reported in early October 2023. Robusta rose to a 7-week high registering at 29.280 tonnes, mainly Brazilian Conilon Robusta coffee.

At the end of the week, DXY continued its upward momentum right after news of the Swiss Central Bank (SNB) cutting the Swiss Franc interest rate by 0,25% to 1,5%/year and the possibility of the UK Central Bank ( BoE) may start cutting interest rates, previously the Central Bank of Brazil (BC) cut the Reais interest rate by 0,5% to 10,75%/year, which has helped Brazilians slow down sales and the Central Bank Japan raised the Yen interest rate to 0,1%, ending a long period of negative interest rates since 2016. Prices in most commodity markets have softened.

Robusta coffee inventory issued by the London Exchange Certified and monitored, as of Friday, March 22, increased by 3 tons, an increase of 2.030% compared to a week earlier, to register at 7,45 tons, (about 29.280 bags, 488.000 kg bags), a quite strong increase, has contributed to coffee futures prices returning to a downward trend.

In a December 12 report, the US Department of Agriculture (USDA) said that Vietnam, the world's largest producer of Robusta coffee, is expected to supply 2023 million 26,6 kg bags of coffee this year. crop 60-2023 (period October 2024 - September 10). That's down 2023% from USDA's forecast in June.

This forecast is made in the context of record low production of the 2022 - 2023 crop year, at 26,3 million bags.

Output in Indonesia, the world's third-largest producer, is forecast to fall 20%.

In addition to adverse weather such as high temperatures and drought in Southeast Asia caused by the El Nino phenomenon, some farmers are switching to growing other more effective crops such as durian, rubber,... as well as is the cause of coffee output shrinking.

Global coffee bean consumption in 2023-2024 will increase by 20% compared to 2013-2014, with notable growth in Asia. USDA reports that consumption in major producing countries such as Vietnam and Indonesia increased by 60% and 90%, respectively, during the same time period. China, the world's seventh largest coffee consumer, is seeing a 130% increase.