Coffee prices continue to rise, breaking records

It is forecasted that coffee prices on May 29, 2024 in the domestic market will continue to increase towards 120,000 VND/kg.

Despite being in the harvest period, coffee prices are still increasing rapidly. Compared to this time last year, domestic Robusta coffee prices are growing rapidly. This creates a strange situation because normally, during the harvest period, coffee prices often decrease due to increased supply.

Besides, according to the forecast of the world coffee market price on May 29, 2024 on online trading floors, it will continue to increase strongly.

While Robusta prices typically rise, prompting a shift to more Arabica consumption, that is not happening now, said Andrea Illy, president of Italy’s Illycaffe SpA. He believes this is a unique driver in the market. For certain types of drinks, such as instant coffee, Robusta beans are more important.

He also noted that climate change has constrained supply, causing instability in the supply of inventories of this commodity and leading to higher base prices.

Domestic coffee prices today, May 28, 2024, domestic coffee prices continued to increase slightly, an increase of about 700 VND/kg. Currently, the average purchase price in the Central Highlands provinces is 116,400 VND/kg, the highest purchase price in Dak Nong province is 116,700 VND/kg.

Specifically, the coffee purchase price in Gia Lai and Kon Tum provinces is at 116,200 VND/kg; In Dak Nong province, coffee is purchased at the highest price of 116,700 VND/kg.

The price of green coffee beans (coffee beans, fresh coffee beans) in Lam Dong province in districts such as Bao Loc, Di Linh, Lam Ha, coffee is purchased at 115,200 VND/kg.

Coffee prices today in Dak Lak province; in Cu M'gar district, coffee is purchased at about 116,100 VND/kg, and in Ea H'leo district, Buon Ho town, it is purchased at the same price of 116,200 VND/kg.

London Robusta coffee price (Photo: Screenshot giacaphe.com)

Similar to the increase in domestic coffee prices, today's online coffee prices of three exchanges simultaneously increased beyond the peaks in London, New York and Brazil, bringing coffee prices to a new record.

Updated world coffee prices at 20:20 on May 28, 2024, Vietnam time on the London exchange, Robusta coffee prices continued to increase in terms, setting a new price of 4,000 USD/ton, fluctuating at 3,715 - 4,000 USD/ton.

Specifically, the price of Robusta coffee futures contract for July 2024 delivery on the London floor was at 4,000 USD/ton, up 108 USD/ton compared to the beginning of the trading session. The delivery term for September 2024 was 3,909 USD/ton, up 103 USD; the delivery term for November 2024 was 3,813 USD/ton, up 104 USD and the delivery term for January 2025 was 3,715 USD/ton, up 99 USD.

New York Arabica coffee price (Photo: Screenshot giacaphe.com)

Similarly, the price of Arabica coffee on the New York floor today at 20:20 on May 28, 2024 continued to increase sharply in all terms, fluctuating at 225.25 - 229.40 cents/lb.

Specifically, the July 2024 delivery period is 229.40 cents/lb; up 11.15 cents/lb compared to the beginning of the session. The September 2024 delivery period is 228.25 cents/lb, up 10.90 cents/lb; the December 2024 delivery period is 226.55 cents/lb, up 10.45 cents/lb and the March 2025 delivery period is 225.25 cents/lb, up 10 cents/lb.

Brazilian Arabica coffee prices (Photo: Screenshot giacaphe.com)

The price of Brazilian Arabica coffee at 20:20 on May 28, 2024 increased in some trading terms, ranging from 260.55 - 273.25 USD/ton.

Specifically, the July 2024 delivery period is 273.25 USD/ton. The September 2024 delivery period is 279.05 USD/ton, up 12 USD compared to the beginning of the trading session; the December 2024 delivery period is 275.00 USD/ton, up 12.60 USD and the March 2025 delivery period is 260.55 USD/ton.

Robusta coffee traded on the ICE Futures Europe (London exchange) opens at 16:00 and closes at 00:30 (next day), Vietnam time.

Arabica coffee on the ICE Futures US (New York floor) opens at 16:15 and closes at 01:30 (next day), Vietnam time.

For Arabica coffee traded on the B3 Brazil exchange, it will be open from 19:00 - 02:35 (next day), Vietnam time.

Meanwhile, the U.S. Department of Agriculture recently announced that the harvest season in Indonesia is expected to begin in June. Better weather is expected to support a recovery in production next season in Indonesia. The Indonesian Coffee and Exporters Association also said that production is forecast to increase by 14% to around 10 million bags in 2024.

Guilherme Morya, an analyst at Rabobank, noted that both Robusta and Arabica exports from Brazil have increased sharply. However, he also pointed out that the tightness in Robusta supply from Vietnam has attracted hedge funds to the market, pushing up the price of the commodity globally.

The USD has officially entered its first monthly decline this year. Accordingly, the DXY index, which measures the greenback's movements against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF), fell to 104.58.

This is because investors focus on inflation data from the US, Europe and Japan to guide the global interest rate outlook.

US economic data has been volatile and unpredictable, reducing policymakers' confidence in the outlook for interest rates in the coming period.

In mid-May 2024, Robusta coffee prices in the domestic market rebounded after falling below VND100,000/kg. However, favorable weather information in the Central Highlands and exchange rate fluctuations restrained the strong recovery of coffee prices.

Source: https://congthuong.vn/du-bao-gia-ca-phe-ngay-2952024-gia-ca-phe-tiep-da-tang-xo-do-ky-luc-322887.html