World coffee market developments
Last week, on the world market, Robusta and Arabica coffee prices experienced significant fluctuations. Robusta coffee futures for January 2025 delivery on the London exchange decreased by 98 USD/ton, while Arabica coffee futures for March 2025 delivery on the New York exchange increased by 5.5 cents/lb.
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| Gia Lai people dry coffee beans before selling. Photo: Hien Mai |
The main reason for this fluctuation is the impact of the US Federal Reserve (Fed) lowering interest rates, affecting the exchange rate and the commodity market. The continuous rise and fall of the US dollar, along with the weakening of the Brazilian Real, encourages Brazilian manufacturers to boost exports, increasing supply in the market.
Domestic coffee market continues to decline slightly
In Vietnam, heavy rains in the Central Highlands region have recently affected the progress of the coffee harvest, raising concerns about output and quality. Currently, the coffee harvest is about 40-50% complete. Vietnam's coffee output this crop year is forecast to reach about 1.6 million tons, while domestic consumption is expected to be between 270,000 and 300,000 tons.
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| Coffee quality is always guaranteed when people harvest 100% ripe coffee. Photo: Hien Mai |
According to information from Giacaphe.com, updated coffee prices at 3:30 p.m. today, December 23, 2024, the average domestic coffee price is at 120,600 VND/kg, down -500 VND/kg compared to yesterday.
The highest coffee purchase price in key regions of the Central Highlands was recorded at 121,000 VND/kg. Specifically, today's coffee price in Dak Lak is 120,500 VND/kg, down -500 VND/kg compared to yesterday. Coffee price in Lam Dong is 120,000 VND/kg, down -500 VND/kg. Meanwhile, coffee price in Gia Lai today is 120,300 VND/kg, down -700 VND/kg and coffee price in Dak Nong today is 121,000 VND/kg, also down -300 VND/kg compared to yesterday.
The domestic coffee prices that Giacaphe.com lists every day are calculated based on the prices of two world coffee exchanges combined with continuous surveys from businesses and purchasing agents in key coffee growing areas across the country.
Y5Cafe always tries to stay as close as possible to each region, however there will be days when the listed price does not completely match the local coffee purchase price, but Y5Cafe believes that the listed information is a valuable reference source for farmers and coffee purchasing businesses.
Coffee price prediction tomorrow 2 4/12/2024
Over the past week, domestic coffee prices have also experienced significant fluctuations, with a decrease of VND3,000 - 4,000/kg. Currently, coffee prices fluctuate between VND120,500 - 121,000/kg.
According to statistics from the Vietnam Coffee and Cocoa Association (VICOFA), in the first half of December 2024, businesses exported 48,371 tons of coffee, with an export turnover of nearly 264 million USD, down 51.5% in volume and 6.5% in value compared to the same period last year. Accumulated to December 15, 2024, Vietnam exported over 1.26 million tons of coffee, with an export turnover of nearly 5.2 billion USD, down 16.5% in volume but up 32.4% in value compared to the same period last year.
With the above factors, experts predict that domestic coffee prices on December 24, 2024 will remain stable at around 120,500 - 121,500 VND/kg, with no signs of sudden increase or decrease. However, the coffee market is always affected by many economic and weather factors, so coffee growers and traders should closely monitor developments to make timely and appropriate decisions.
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