(VAN) Coffee prices on 06/15/2024 simultaneously decreased. Domestic coffee prices dropped by VND 2,000, trading around VND 119,500 – 120,700/kg.
Coffee prices on June 15 globally
Globally, both the London and New York exchanges saw sharp declines on June 15.
Specifically, the price of Robusta on the London exchange for July 2024 delivery dropped by $ 106, settling at $ 4,115/ton. The September 2024 delivery also saw a significant decrease of $ 84, standing at $ 4,009/ton.
On the New York exchange, the price of Arabica for July 2024 delivery fell by 1.9 cents, landing at 224.15 cents/lb. The September 2024 delivery decreased by 1.85 cents, reaching 224.40 cents/lb.
Today, global coffee prices experienced a sharp decline on both exchanges. According to experts, strong selling pressure on the Robusta exchange towards the end of the session dragged down prices on both exchanges. This agricultural commodity is also under pressure from the ongoing harvest in Brazil, which is progressing smoothly and quickly.
Additionally, the USD has risen to its highest level in nearly seven weeks, further reducing coffee’s appeal. As of the survey, the DXY index, which measures the greenback’s fluctuation against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF), has increased to 105.52.
The USD remains high as traders bet that the Fed will only cut interest rates once this year.
Thus, global coffee prices on 06/15/2024, have fallen sharply compared to yesterday.
Coffee prices on June 15 domestically
In the domestic market, coffee prices fell sharply by VND 2,000/kg compared to yesterday.
Specifically, in Lam Dong province, the districts of Di Linh, Bao Loc, and Lam Ha are all trading at VND 119,500/kg.
In Dak Lak, Cu M’gar district is purchasing at VND 120,500/kg today. Meanwhile, Ea H’leo and Buon Ho districts are trading at VND 120,400/kg.
In Dak Nong province, traders in Gia Nghia and Dak R’lap are trading at VND 120,700 and VND 120,600/kg, respectively.
In Gia Lai province, Chu Prong district is trading at VND 120,400/kg, while Pleiku and La Grai are both maintaining a price of VND 120,300/kg.
In Kon Tum province, the purchase price today is VND 120,300/kg.
The domestic coffee price today has sharply declined and has dropped to the threshold of VND 120,000/kg. Similarly, domestic pepper prices continue to decrease significantly, losing up to VND 5,000, and have fallen to VND 157,000/kg.
The Agency of Foreign Trade (Ministry of Industry and Trade) recently forecasted that the price of these agricultural products will rise again, mainly due to increased investor concerns about the supply outlook from Vietnam.
Currently, speculative funds have increased their net buying positions, with expectations that Robusta supply from Vietnam will remain scarce in the near future. Information from Volcafe traders indicates that Vietnam’s Robusta output for the 2024/25 crop year is estimated at 24 million bags – the lowest in 13 years, due to unfavourable weather conditions.
According to a report from the USDA Post (Foreign Agricultural Service of the U.S. Department of Agriculture), Vietnam’s coffee output in the 2024/25 crop year is forecasted to be around 29 million bags (60kg/bag), slightly lower than the estimated 29.1 million bags for the 2023/24 crop year.
Specifically, Robusta production is expected to reach 27.85 million bags, lower than the 28 million bags of the previous crop year, while Arabica production is projected to increase slightly to 1.15 million bags.
The estimate for the 2023/24 crop year in Vietnam has been revised up by 6% from previous forecasts to 29.1 million bags. Higher coffee prices in the 2023/24 crop year have prompted farmers to increase investment in production to reduce harvest losses and other inputs.
Instead of completely switching to other crops, coffee farmers are currently applying mixed cropping methods to diversify and increase revenue.
Thus, the domestic coffee price on 06/15/2024 is trading around VND 119,500 – 120,700/kg.
$ 1 = VND 25.191 – Source: Vietcombank
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