(VAN) Coffee prices on 07/24/2024, have collectively dropped sharply. Domestic coffee prices have decreased by VND 1,300 falling to VND 126,000 – 126,700/kg.
Latest domestic and global coffee prices on 07/24/2024
Coffee prices on July 24 globally
Globally, both the London and New York exchanges sharply declined on 07/24/2024.
Specifically, the price of Robusta on the London exchange for September 2024 delivery fell by $ 100, reaching $ 4,481/ton. The November 2024 delivery contract dropped significantly by $ 80, to $ 4,327/ton.
On the New York exchange, the price of Arabica for September 2024 delivery decreased by 3.95 cents, down to 239.10 cents/lb. The December 2024 delivery contract also fell sharply by 3.8 cents, to 237.50 cents/lb.
Latest Arabica and Robusta prices on 07/24/2024
Global coffee prices have sharply declined today after the previous session’s increase. The rising USD, a weaker Brazilian real, and increased inventory have led speculators to sell off, causing a sharp downturn in both exchanges.
As of the latest survey, the DXY index, which measures the USD against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF), rose to 104.47.
Despite maintaining high levels recently due to concerns about hot weather affecting coffee production in Brazil and Vietnam for the 2024/25 season, prices have declined today.
According to the International Coffee Organization (ICO), during the first eight months of the 2023/2024 season (October 2023 to May 2024), global coffee bean exports reached 84 million bags, an 11.6% increase over the previous season. Roasted coffee exports remained steady at 0.48 million bags, and instant coffee exports rose by 5.1% to 8.24 million bags compared to the same period in the 2022/2023 season.
Thus, global coffee prices on 07/24/2024, have decreased compared to yesterday.
Coffee prices on July 24 domestically
In the domestic market, coffee prices have also significantly dropped compared to yesterday.
Specifically, in Lam Dong province, the three districts of Di Linh, Bao Loc, and Lam Ha are trading at VND 126,000/kg.
In Dak Lak province, Cu M’gar district is purchasing at VND 126,500/kg today, while Ea H’leo and Buon Ho districts are trading at VND 126,400/kg.
In Dak Nong province, traders in Gia Nghia and Dak R’lap are respectively trading at VND 126,700/kg and VND 126,600/kg.
In Gia Lai province, Chu Prong district is trading at VND 126,500/kg, while Pleiku and La Grai are both holding at VND 126,400/kg.
In Kon Tum, today’s purchase price is VND 126,500kg.
Domestic coffee prices today have sharply declined by VND 1,300/kg, bringing the price back to VND 126,000/kg.
During the first nine months of the 2023/24 season (from October 2023 to June 2024), Vietnam has exported nearly 1.26 million tons of coffee, which is approximately 86% of the current season’s production (around 1.47 million tons) and a decrease of over 11% compared to the same period in the 2022/23 season.
If we exclude the carryover stock from last year, Vietnam has about 210,000 tons left for export in the next four months until the new harvest begins in November 2024.
According to some businesses, the current coffee inventory in Vietnam is quite limited, mainly for the domestic market. Companies are hesitant to sign new contracts due to the volatile nature of coffee prices and high transportation costs.
Previously, farmers in some regions had rapidly removed coffee plants to switch to growing durian. Now that coffee prices are high and providing good profits, some farmers are considering switching back to coffee cultivation.
However, the hasty and uncontrolled crop conversion driven by short-term profits, without proper guidance from specialized agencies, has been warned by localities and experts as potentially risky in the future.
Thus, on 07/24/2024, domestic coffee prices are trading around VND 126,000 – 126,700/kg.
$ 1 = VND 25.147 – Source: Vietcombank.
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