Coffee prices continued to rise on "super Wednesday", reaching 79,000 VND/kg domestically.

Coffee prices increased across the board under pressure on "Super Wednesday 31/1" - later today both the US Federal Reserve (Fed) and the Brazilian Monetary Policy Committee (Copom) will respond to the market about important monetary policy decisions.

World coffee prices continue to rise, robusta coffee prices hit a record high, while arabica prices hit their highest in over a month.

The strong rebound of the DXY index has prompted funds and speculators to continue to liquidate net positions on both exchanges despite the uncertain weather information in Brazil. There is concern across the coffee growing regions of Brazil that the 2024 coffee crop will not meet expectations, due to the impact of this year's El Nino weather phenomenon, making farmers reluctant to sell at this time.

Domestic coffee prices continued to increase by nearly 1,000 VND/kg, officially reaching a record 79,000 VND/kg, with the market fluctuating between 78,000 - 79,000 VND/kg.

The London robusta market recovered near the end of the session despite having increased quite a bit earlier after the General Statistics Office of Vietnam reported that exports in January were estimated at about 210,000 tons, up 47.6% year-on-year, due to concerns about robusta supply from Asian countries.

In addition, major robusta producers in Southeast Asia are facing shipping delays to the European market due to transport congestion, further pushing robusta prices to record highs.

Low ICE inventory reports also continued to support the bullish price trend.

Domestic coffee prices today, January 31, increased by 800 - 900 VND/kg in some key purchasing localities. (Source: YouTube)

At the end of the trading session on January 30, the price of robusta coffee on the ICE Futures Europe London continued to increase, the delivery term in March 2024 increased by 61 USD, trading at 3,336 USD/ton. The delivery term in May 2024 increased by 59 USD, trading at 3,181 USD/ton. Average trading volume.

Arabica coffee prices on the ICE Futures US New York exchange increased, with the March 2024 delivery period falling 4.75 cents, trading at 194.00 cents/lb. Meanwhile, the May 2024 delivery period saw a trading price fall 4.20 cents, trading at 190.25 cents/lb. Average trading volume was high.

Domestic coffee prices today, January 31, increased by 800 - 900 VND/kg in some key purchasing localities.

Average price	Medium
USD/VND exchange rate	24,205	0
DAK LAK	78,700	+900
LAM DONG	78,000	+800
GIA LAI	78,600	+800
DAK NONG	79,000	+900

Unit: VND/kg.

(Source: Giacaphe.com)

The market is placing high expectations that the Fed Chairman will have a dovish speech as soon as he decides to cut USD interest rates this time.

According to preliminary data from the General Statistics Office, Vietnam's average coffee export price in January 2024 reached 2,955 USD/ton, up 2.3% over the previous month and up 35.2% over the same period in 2023.

Experts predict that coffee prices will likely continue to rise as inventories in the EU have fallen sharply due to the Red Sea incident. However, on the London exchange, the market is poised for a correction this week as futures contracts have been overbought in recent weeks.

For the domestic market, rising prices are causing many obstacles for exports as businesses do not dare and do not have enough finance to buy export goods.

According to data from the International Coffee Organization (ICO), after a decline in the previous crop year, global coffee trade is showing an upward trend again.

ICO figures show global coffee exports reached 10.6 million bags in November 2023, up 4.1% from the same period in 2022. Bringing total exports in the first two months of the 2023-2024 crop year (October and November 2023) to 20.2 million bags, up 3.1% from the previous crop year.

Source