Domestic coffee prices are falling?

Coffee prices are forecast to drop sharply on June 27, 2024 in the domestic market. According to experts, coffee prices fell due to the liquidation of short-term contracts by exchanges, combined with news of rain in Brazil's key coffee growing regions.

Record wholesale prices have so far had a limited impact on consumer prices, with coffee inflation rising 1.6% in the 27-nation European Union in April, and 2.5% in Italy, according to the latest Eurostat data.

Roasters are starting to pass on higher input costs to their prices, while some traders say concerns about Vietnam’s output will persist because of insufficient rainfall.

High wholesale prices may also persist as robusta demand is rising globally and farmers have stepped up their leverage in the current situation, with many also replacing coffee with durian due to strong Chinese demand.

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

Specifically, the coffee purchase price in Gia Lai province (Chu Prong) is 124,200 VND, in Pleiku and La Grai the same price is 124,100 VND/kg; In Kon Tum province the price is 124,200 VND/kg; In Dak Nong province the coffee is purchased at the highest price of 124,400 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 123,000 VND/kg.

Coffee prices today (June 26) in Dak Lak province; in Cu M'gar district, coffee is purchased at about 124,300 VND/kg, and in Ea H'leo district, Buon Ho town, it is purchased at the same price of 124,200 VND/kg.

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

Updated world coffee prices at 20:30 on June 26, 2024, Vietnam time on the London exchange, the price of Robusta coffee futures for September 2024 delivery on the London exchange was at 4,068 USD/ton, down 49 USD compared to the beginning of the trading session. The delivery term for November 2024 was 3,894 USD/ton, down 43 USD; the delivery term for January 2025 was 3,735 USD/ton, down 38 USD and the delivery term for March 2025 was 3,649 USD/ton, down 37 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 26, 2024 decreased in all terms, fluctuating at 221.15 - 226.15 cents/lb.

Specifically, the September 2024 delivery period is 226.15 cents/lb; down 3.15 cents/lb compared to the beginning of the session. The December 2024 delivery period is 224.45 cents/lb, down 2.80 cents/lb; the March 2024 delivery period is 223.00 cents/lb, down 2.70 cents/lb and the May 2025 delivery period is 221.15 cents/lb, down 2.60 cents/lb.

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

The price of Brazilian Arabica coffee today at 20:30 on June 26, 2024 decreased. Specifically, the delivery period for July 2024 is 290.40 USD/ton, down 3.01%; the delivery period for September 2024 is 275.95 USD/ton (down 1.32%); the delivery period for December 2024 is 273.00 USD/ton (down 3.25%) and the delivery period for March 2025 is 274.40 USD/ton, down 9.40%.

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.

Coffee trading firm Volcafe – one of the world’s largest coffee trading firms – forecasts Vietnam’s coffee output in the next crop year to be around 24 million bags; while the preliminary forecast from the US Department of Agriculture (USDA) is 27.85 million bags.

The forecast of a decline in Vietnam's coffee output will further tighten the global supply of Robusta coffee, pushing world coffee prices to remain high.

Currently, the financial group Marex Group Plc (UK) forecasts that the global coffee market in the 2024/2025 crop year will have a shortage of about 2.7 million bags of Robusta coffee, mainly due to a decrease in production in Vietnam. This shows that the coffee supply from Vietnam is having a dominant impact on the global market.

Information for reference only. Prices may vary by location.

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