Market expects new supply from Vietnam to put pressure on prices

Domestic coffee prices were updated at 4:30 a.m. on October 23, 2024 as follows, according to www.giacaphe.com, domestic coffee prices today decreased slightly by 200 VND/kg, ranging from 111,000-111,600 VND/kg. Currently, the average purchase price in the Central Highlands provinces is 111,300 VND/kg, the highest purchase price in Dak Nong province is 111,600 VND/kg.

Specifically, the coffee purchase price in Gia Lai province (Chu Prong) is 111,400 VND, down 200 VND/kg compared to yesterday, in Pleiku and La Grai the price is 111,300 VND/kg; In Kon Tum province, the price is 111,400 VND/kg, down 200 VND/kg compared to yesterday; In Dak Nong province, coffee is purchased at the highest price of 111,600 VND/kg, down 200 VND/kg compared to yesterday.

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 111,000 VND/kg, down 200 VND/kg compared to yesterday.

Coffee prices today (October 23) in Dak Lak province; in Cu M'gar district, coffee is purchased at about 111,400 VND/kg, down 200 VND/kg, and in Ea H'leo district, Buon Ho town, it is purchased at the same price of 111,300 VND/kg.

Coffee prices today October 23, 2024: The market expects new supply from Vietnam to put pressure on prices

World coffee prices in the early morning of October 23, 2024, at 4:30 am, were updated on the Vietnam Commodity Exchange MXV (the only channel in Vietnam that continuously updates and links to exchanges around the world).

Today's online coffee prices of the three main coffee futures exchanges ICE Futures Europe, ICE Futures US and B3 Brazil are continuously updated by Y5Cafe during the trading hours of the exchange, updated by www.giacaphe.com as follows:

Coffee price today October 23, 2024: Robusta coffee price on London floor. (Photo: Screenshot giacaphe.com

At the end of the trading session, the price of Robusta coffee on the London floor on October 23, 2024 at 4:30 a.m. decreased to 4,263 - 4,487 USD/ton. Specifically, the delivery period for November 2024 is 4,487 USD/ton (down 90 USD/ton); the delivery period for January 2025 is 4,425 USD/ton (down 78 USD/ton); the delivery period for March 2025 is 4,335 USD/ton (down 70 USD/ton) and the delivery period for May 2025 is 4,263 USD/ton (down 61 USD/ton).

Arabica coffee prices on the New York floor on October 23, 2024. (Photo: Screenshot of giacaphe.com)

In contrast, the price of Arabica coffee on the New York floor on the morning of October 23, 2024 decreased, from 244.49 - 249.85 cents/lb. Specifically, the delivery period for December 2024 is 249.85 cents/lb (down 0.74%); the delivery period for March 2025 is 248.75 cents/lb, down 0.68%); the delivery period for May 2025 is 247.20 cents/lb (down 0.54%) and the delivery period for July 2025 is 244.40 cents/lb (down 0.39%).

Brazilian Arabica coffee price on October 23, 2024. (Photo: Screenshot of giacaphe.com)

The price of Brazilian Arabica coffee decreased on the morning of October 23, 2024. Specifically, the delivery period for December 2024 is 299.60 USD/ton (down 0.25%); the delivery period for March 2025 is 300.70 USD/ton (down 0.31%); the delivery period for May 2025 is 302.80 USD/ton (down 0.59%) and the delivery period for July 2025 is 299.00 USD/ton (down 0.42%).

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.

Global coffee prices continue to fall, pushing Robusta coffee further away from its record high of $4,665 per tonne set in September. Pressure from large supplies as farmers enter the harvest season has contributed to a sharp drop in coffee prices, although prices remain above VND100,000 per kilogram. However, the recent downward trend has left many coffee growers concerned about their profits this season.

According to experts, the reasons for the decline in coffee prices are still the high USD, supply pressure from Vietnam and favorable rainy weather in coffee growing areas in Brazil.

Rains returned to most of Brazil’s major coffee-growing regions last week, weather agencies reported, improving growing conditions and raising hopes that the 2025-26 crop could improve after a record-breaking dry spell.

Rains are forecast to continue at least through October. Increased rainfall in the southeastern part of Brazil, combined with cooler temperatures, will create ideal conditions for coffee plants to continue to recover and grow.

However, farmers and analysts still predict that Brazil's coffee harvest in 2025 will continue to decline compared to this year due to late rains that prevent the crop from fully recovering.

The Vietnam Commodity Exchange (MXV) said that important information that investors should pay attention to in the coming time is that speculators in the coffee derivatives market have started to narrow their net buying positions as Vietnam begins its harvest season and is expected to enter the main crop in the next 1-1.5 months. This could be a sign that the market expects new supply from Vietnam to put pressure on prices.