(VAN) Coffee prices on 07/12/2024 turned upwards. Domestic coffee prices have slightly increased by VND 500, reaching the range of VND 126,600 – 127,200/kg.
Latest update on domestic and global coffee prices on 07/12/2024
Coffee prices on July 12 globally
On the global stage, both the London and New York markets saw increases on July 12.
Specifically, Robusta prices on the London market for September 2024 surged by $ 99 to reach $ 4,576/ton. Meanwhile, the November 2024 contract rose by $ 86 to $4,397/ton.
On the New York market, Arabica prices for September 2024 rose slightly by 1.3 cents, recovering to 244.85 cents/lb. The December 2024 contract also increased by 1.4 cents, reaching 242.65 cents/lb.
Latest Arabica and Robusta prices on 07/12/2024
Today, global coffee prices have rebounded, especially with Robusta increasing by more than 2%. The USD weakened following news of subdued US inflation in June, further boosting confidence that the Fed may soon cut interest rates. This has created conditions for both the London and New York markets to rise again.
According to the Wall Street Journal, following the latest CPI report, the likelihood of a Fed rate cut in September has increased. The US Federal Reserve is currently maintaining interest rates in the range of 5.25% to 5.5%, the highest in over 22 years.
Additionally, Robusta has received support from concerns over drier-than-normal weather impacting coffee yields in Brazil and Vietnam—two of the world’s largest Robusta producers.
Bloomberg forecasts that commodity prices will continue to rise until mid-2025 due to supply shortages from major growing regions. Furthermore, European consumers are expected to pay more for their daily coffee due to forest protection regulations.
Giuseppe Lavazza, Chairman of Luigi Lavazza SpA, predicts another shortfall in Vietnam’s coffee production, driving up Robusta prices sharply. He noted that this year’s poor harvest has led coffee roasters to pay up to $ 1,000/ton for Vietnamese coffee beans.
Mr Lavazza assesses that this situation is unprecedented in coffee industry history, with the prolonged effect of rising coffee prices.
He also highlighted that higher commodity prices, combined with increased shipping costs due to disruptions in the Suez Canal and a stronger US dollar, have significantly raised costs for coffee roasting companies in Italy by over EUR 800 million ($ 865 million) over the past two years.
Thus, global coffee prices on 07/12/2024, have recovered compared to yesterday.
Coffee prices on July 12 domestically
In the domestic market, coffee prices on July 12, have increased by VND 500 compared to yesterday.
Specifically, in Lam Dong province, the districts of Di Linh, Bao Loc, and Lam Ha are trading at VND 126,600/kg.
In Dak Lak province, Cu M’gar district is purchasing at VND 127,200/kg. Ea H’leo and Buon Ho districts are trading at VND 127,100/kg.
In Dak Nong province, traders in Gia Nghia and Dak R’lap are trading at VND 127,200/kg and VND 127,100/kg, respectively.
In Gia Lai province, Chư Prông district is trading at VND 127,200/kg, while Pleiku and La Grai districts are both at VND 127,100/kg.
Meanwhile, purchasing prices in Kon Tum province are at VND 127,100/kg today.
Domestic coffee prices today have rebounded after a sharp decline yesterday. As a result, this agricultural product has maintained the threshold of VND 127,000/kg. Meanwhile, domestic pepper prices have increased by VND 1,000/kg in Dak Lak, bringing this agricultural product back to the VND 154,000/kg threshold.
Thus, domestic coffee prices on 07/12/2024, are trading around the range of VND 126,600 – 127,200/kg.
$ 1 = VND 25.210 – Sources: Vietcombank.
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