Is the downtrend continuing?

Coffee prices on June 28, 2024 in the domestic market are forecast to continue to decline. Weather conditions in the main coffee growing regions of the Central Highlands of Vietnam are reported to have been affected by drier weather and extreme heat from March to May.

The combination of drought, heat and outbreaks of mealybugs and red spider mites is expected to reduce the next Robusta crop in Vietnam by 15% to 20%, said the chairman of the Vietnam Coffee and Cocoa Association (Vicofa).

According to Vicofa’s estimates, Robusta coffee production for the 23/24 crop is around 26.7 million bags, while Vietnam’s next crop, 24/25, will be between 21.40 and 22.70 million bags. This is significantly lower than Volcafé’s previous preliminary forecast of 24 million bags and much lower than the USDA’s estimate of 27.85 million bags issued last week. This lower production scenario is naturally reflected in London Robusta prices and the attitudes of Vietnamese coffee growers, who are the leading Robusta growers, who have been absent from the market.

In the domestic market, today's coffee prices were updated at 4:30 a.m. on June 27, 2024 as follows, according to www.giacaphe.com, today's domestic coffee prices turned down by 3,000 VND/kg, ranging from 120,000-121,400 VND/kg. Currently, the average purchase price in the Central Highlands provinces is 121,200 VND/kg, the highest purchase price in Dak Nong province is 121,400 VND/kg.

Specifically, the coffee purchase price in Gia Lai province (Chu Prong) is 121,200 VND, in Pleiku and La Grai the same price is 121,100 VND/kg; In Kon Tum province the price is 121,200 VND/kg; In Dak Nong province the coffee is purchased at the highest price of 121,400 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 120,000 VND/kg.

Coffee prices today (June 27) in Dak Lak province; in Cu M'gar district, coffee is purchased at about 121,300 VND/kg, and in Ea H'leo district, Buon Ho town, it is purchased at the same price of 121,200 VND/kg.

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

Updated world coffee prices at 20:30 on June 27, 2024, Vietnam time on the London exchange, the price of Robusta coffee futures for September 2024 delivery on the London exchange was at 4,078 USD/ton, up 19 USD compared to the beginning of the trading session. The delivery term for November 2024 was 3,887 USD/ton, up 14 USD; the delivery term for January 2025 was 3,713 USD/ton, up 3 USD and the delivery term for March 2025 was 3,640 USD/ton, up 15 USD.

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

Similarly, the price of Arabica coffee on the New York floor today at 20:30 on June 27, 2024 increased in all terms, fluctuating at 222.00 - 227.00 cents/lb.

Specifically, the September 2024 delivery period is 227.00 cents/lb; up 2.65 cents/lb compared to the beginning of the session. The December 2024 delivery period is 225.40 cents/lb, up 2.90 cents/lb; the March 2024 delivery period is 223.85 cents/lb, up 2.95 cents/lb and the May 2025 delivery period is 222.00 cents/lb, up 2.90 cents/lb.

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

The price of Brazilian Arabica coffee today at 20:30 on June 27, 2024 fluctuated in opposite directions. Specifically, the delivery period for July 2024 was 284.00 USD/ton, down 2.20%; the delivery period for September 2024 was 277.75 USD/ton, up (up 126%); the delivery period for December 2024 was 273.95 USD/ton (down 1.13%) and the delivery period for March 2025 was 268.05 USD/ton, down 6.35%.

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 floor (New York floor) opens at 16:15 and closes at 01:30 (next day), Vietnam time.

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

The market was seen as moderately down on Wednesday, as the Brazilian real fell to a 19-month low against the dollar, encouraging export sales from Brazilian coffee producers. Additionally, forecasts of rain next week in Brazil’s coffee-growing regions also helped ease concerns about drought that had been weighing on prices.

India's coffee exports have increased as Europe increased purchases from the country ahead of the European Union Deforestation Regulation (EUDR) coming into effect, Business India reported.

Indian coffee exporters are seeing increased demand from European buyers, who are reportedly building up inventories ahead of the deadline for compliance with the proposed European Union Deforestation Regulation (EUDR) standards. The EUDR is aimed at reducing imports of products linked to deforestation and requires stringent due diligence and traceability measures for commodities such as coffee, and could impact exports from producing countries.

Information for reference only. Prices may vary by location.

Source: https://congthuong.vn/du-bao-gia-ca-phe-ngay-2862024-da-giam-van-tiep-dien-328620.html