Domestic coffee prices increase shockingly?

It is forecasted that coffee prices on May 25, 2024 in the domestic market will continue to increase towards 120,000 VND/kg.

The sharp rise in domestic coffee prices and huge trading volume demand shows that concerns about supply shortages along with geopolitical and economic uncertainties are still weighing on buyers.

The coffee market is forecast to continue to increase in the coming time and Robusta coffee prices will soon return to $4,000/ton. Experts predict that by 2024, Vietnam's coffee exports could reach $5 billion thanks to many factors, including high prices.

Growing global demand for some green coffee products for instant coffee is also driving domestic demand.

Besides, according to the forecast of the world coffee price market on May 25, 2024, on online trading floors, there are mixed increases and decreases.

Coffee prices have risen in recent days, extending a strong rally and reaching a three-week high. Coffee prices rose sharply this week on concerns that excessive drought in Brazil will damage coffee crops and limit global production.

Brazil's Minas Gerais region received zero or zero percent of its historical average rainfall this week, the fourth consecutive week without rainfall, Somar Meteorologia reported. Minas Gerais accounts for about 30 percent of Brazil's arabica coffee production.

Domestic coffee prices today, May 24, 2024, domestic coffee prices increased from 7,000 to 7,200 VND/kg. Currently, the average purchase price in the Central Highlands provinces is 117,200 VND/kg, the highest purchase price in Dak Nong province is 117,500 VND/kg.

Specifically, the coffee purchase price in Gia Lai and Kon Tum provinces is at 117,000 VND/kg; In Dak Nong province, coffee is purchased at the highest price of 117,500 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 116,000 VND/kg.

Coffee prices today in Dak Lak province; in Cu M'gar district, coffee is purchased at about 117,000 VND/kg, and in Ea H'leo district, Buon Ho town, it is purchased at the same price of 117,100 VND/kg.

Similar to the increase in domestic coffee prices, today's online coffee prices of three exchanges simultaneously increased sharply in London and New York and increased and decreased in opposite directions in Brazil.

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

Updated world coffee prices at 20:10 on May 24, 2024 Vietnam time on the London exchange, Robusta coffee prices continued to increase in terms, fluctuating at 3564 - 3843 USD/ton.

Specifically, the price of Robusta coffee futures contract for July 2024 delivery on the London floor was at 3,843 USD/ton, up 24 USD/ton compared to the beginning of the trading session. The delivery term for September 2024 was 3,761 USD/ton, up 22 USD; the delivery term for November 2024 was 3,668 USD/ton, up 24 USD and the delivery term for January 2025 was 3,564 USD/ton, up 3,564 USD.

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

Similarly, the price of Arabica coffee on the New York floor today at 20:10 on May 24, 2024 continued to decrease in all terms, fluctuating at 211.10 - 214.00 cents/lb.

Specifically, the July 2024 delivery period is 214.00 cents/lb; down 1.65 cents/lb compared to the beginning of the session. The September 2024 delivery period is 213.20 cents/lb, down 1.16 cents/lb; the December 2024 delivery period is 211.85 cents/lb, down 1.75 cents/lb and the March 2025 delivery period is 211.10 cents/lb, down 1.75 cents/lb.

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

The price of Brazilian Arabica coffee at 20:10 on May 24, 2024 decreased significantly at all trading terms compared to the beginning of the session, ranging from 257.40 - 269.80 USD/ton.

Specifically, the July 2024 delivery period is 269.80 USD/ton, down 6.35 USD. The September 2024 delivery period is 261.00 USD/ton, down 1.45 USD compared to the beginning of the trading session; the December 2024 delivery period is 258.90 USD/ton, down 0.30 USD and the March 2025 delivery period is 257.40 USD/ton, down 5.30 USD.

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.

The current price increase is mainly due to investors' renewed concerns about the supply outlook from Brazil and Vietnam. Hedge funds have increased their net long positions in anticipation of further shortages of Robusta from Vietnam. Vietnam is currently the world's largest exporter of Robusta.

Marex Group Plc (UK) financial group currently forecasts that the global Robusta coffee market in the period 2024 - 2025 will have a shortage of up to 2.7 million bags of coffee (60 kg/bag), mainly due to a decrease in production in Vietnam.

In addition, some experts pointed out that the European Union's upcoming application of anti-deforestation regulations on imported goods into this market, including coffee, is also a factor pushing up coffee prices as a significant portion of the world's coffee acreage comes from deforestation.

Source: https://congthuong.vn/du-bao-gia-ca-phe-ngay-2552024-gia-ca-phe-trong-nuoc-tang-soc-322172.html