Domestic coffee prices plummet?

Coffee prices on June 27, 2024, in the domestic market are forecast to fall sharply. According to experts, the price drop is due to exchanges liquidating long-term contracts, coupled with news of rain in key coffee-growing regions of Brazil.

According to the latest Eurostat data, record wholesale prices so far have had limited impact on consumer prices, with coffee inflation rising 1.6% in the 27 EU countries in April, and 2.5% in Italy.

Roasters are beginning to pass on rising input costs to selling prices. In addition, some traders believe concerns about production in Vietnam will persist due to insufficient rainfall.

High wholesale prices are also likely to persist due to increasing global demand for Robusta and farmers having increased leverage in the current circumstances, many of whom have also replaced coffee with durian due to strong Chinese demand.

In the domestic market, coffee prices today increased sharply by 3,000 VND/kg, ranging from 123,000 to 124,400 VND/kg. Currently, the average purchase price in the Central Highlands provinces is 124,200 VND/kg, with the highest purchase price in Dak Nong province at 124,400 VND/kg.

Specifically, the purchase price of coffee in Gia Lai province (Chu Prong) is 124,200 VND/kg, while in Pleiku and La Grai it is 124,100 VND/kg; in Kon Tum province the price is 124,200 VND/kg; and in Dak Nong province, coffee is purchased at the highest price of 124,400 VND/kg.

In Lam Dong province, in districts such as Bao Loc, Di Linh, and Lam Ha, the price of bulk green coffee beans (green coffee beans, fresh coffee beans) is 123,000 VND/kg.

Today's coffee prices (June 26th) in Dak Lak province are as follows: in Cu M'gar district, coffee is being purchased at approximately 124,300 VND/kg, while in Ea H'leo district and Buon Ho town, it is being purchased at the same rate of 124,200 VND/kg.

London Robusta coffee prices (Image: Screenshot from giacaphe.com)

World coffee prices updated at 8:30 PM on June 26, 2024 (Vietnam time) on the London exchange: Robusta coffee futures contract for September 2024 delivery on the London exchange was 4,068 USD/ton, down 49 USD from the beginning of the trading session. The November 2024 delivery contract was 3,894 USD/ton, down 43 USD; the January 2025 delivery contract was 3,735 USD/ton, down 38 USD; and the March 2025 delivery contract was 3,649 USD/ton, down 37 USD.

New York Arabica coffee prices (Image: Screenshot from giacaphe.com)

Similarly, Arabica coffee prices on the New York exchange today, at 8:30 PM on June 26, 2024, decreased across all contract periods, fluctuating between 221.15 and 226.15 cents/lb.

Specifically, the September 2024 delivery contract was 226.15 cents/lb, down 3.15 cents/lb from the start of the session. The December 2024 contract was 224.45 cents/lb, down 2.80 cents/lb; the March 2024 contract was 223.00 cents/lb, down 2.70 cents/lb; and the May 2025 contract was 221.15 cents/lb, down 2.60 cents/lb.

Brazilian Arabica coffee prices (Image: Screenshot from giacaphe.com)

Brazilian Arabica coffee prices today, at 8:30 PM on June 26, 2024, decreased. Specifically, the July 2024 delivery contract was $290.40/ton, down 3.01%; the September 2024 contract was $275.95/ton (down 1.32%); the December 2024 contract was $273.00/ton (down 3.25%); and the March 2025 contract was $274.40/ton, down 9.40%.

Robusta coffee traded on the ICE Futures Europe exchange (London exchange) opens at 4:00 PM and closes at 12:30 AM (the next day), Vietnam time.

Arabica coffee on the ICE Futures US (New York) exchange opens at 4:15 PM and closes at 1:30 AM (the next day), Vietnam time.

For Arabica coffee traded on the B3 Brazil exchange, trading hours will be from 7:00 PM to 2:35 AM (the following day), Vietnam time.

Volcafe, one of the world's largest coffee trading firms, forecasts Vietnam's coffee production for the next crop year at approximately 24 million bags; while the US Department of Agriculture (USDA) has a preliminary forecast of 27.85 million bags.

Forecasts of declining coffee production in Vietnam will further tighten the global supply of Robusta coffee, driving world coffee prices higher.

Currently, Marex Group Plc (UK) forecasts a global coffee market deficit of approximately 2.7 million bags of Robusta coffee in the 2024/2025 crop year, mainly due to reduced production in Vietnam. This indicates that coffee supply from Vietnam is having a dominant impact on global market trends.

This information is for reference only. Prices may vary depending on the location.

Source: https://congthuong.vn/du-bao-gia-ca-phe-ngay-2762024-gia-ca-phe-trong-nuoc-truot-doc-khong-phanh-328391.html