Coffee prices on 07/17/2024: Mixed movements

Coffee prices on 07/17/2024 globally

On the global markets, both London and New York exchanges showed mixed movements on July 17.

In London, Robusta coffee for September 2024 delivery dropped by an additional $ 11 to $ 4,572/ton. The November 2024 contract also saw a slight decrease, down $ 5 to $ 4,392/ton.

Meanwhile, in New York, Arabica coffee for September 2024 delivery turned upward, gaining 1.45 cents to reach 243.60 cents/lb. The December 2024 contract increased slightly by 1.4 cents to 241.80 cents/lb.

World coffee pricestoday fluctuated in opposite directions as Robusta continued to decline while Arabica began to rebound.

Part of the reason is the conflicting inventory on the market. The slight increase in Brazil’s currency also limited coffee exports, helping Arabica to recover.

Producer inventories have decreased over the past few years. To meet domestic and export demands in other markets, Brazil’s harvest this year needs to be abundant.

The market is concerned that the output in this world-leading Arabica-growing country will continue to weaken this year, adding tension to global supply.

Furthermore, reports from Brazil’s main ports continue to indicate limited containers and ships, as well as changes in shipping routes causing delays in delivery. This has pushed up commodity costs, thereby increasing the price of this agricultural product over time.

Thus, global coffee prices on 07/17/2024, have shown slight fluctuations compared to yesterday.

Coffee prices on July 17 domestically

Domestically, the coffee market on July 17 continues to see slight declines compared to yesterday.

Specifically, in Lam Dong province, the districts of Di Linh, Bao Loc, and Lam Ha are trading at VND 127,200/kg.

In Dak Lak province, the district of Cu M’gar is purchasing at VND 127,600/kg today. Meanwhile, Ea H’leo and Buon Ho are trading at VND 127,500/kg.

In Dak Nong province, traders in Gia Nghia and Dak R’lấp are respectively trading at VND 128,000 and 127,900/kg.

In Gia Lai province, the district of Chu Prong is trading at VND 127,600 VND/kg, while Pleiku and La Grai are holding at VND 127,500/kg.

The purchase price in Kon Tum today is VND 127,500/kg.

Domestic coffee prices today have decreased by an additional VND 100 – 500/kg but are still holding steady at around VND 128,000/kg.

General Department of Customs data shows that coffee exports have been sharply declining month by month due to dwindling supply. Specifically, in June, coffee exports were only half compared to the same period last year, about 70,000 tons – the lowest since September 2023.

Exports surged from November 2023 to March this year when Vietnam began its harvest, supplementing supplies for businesses. However, export conditions began to weaken as supplies dwindled.

Over the cumulative nine months of the 2023-2024 crop year (from October 2023 to September 2024), Vietnam exported nearly 1.26 million tons of coffee.

Meanwhile, the Ministry of Agriculture and Rural Development indicates that Vietnam’s coffee production for the 2023/24 crop year is forecasted to decrease by 20% compared to 2022/23, down to 1.47 million tons – the lowest in four years. Additionally, production for the 2024/25 crop year may continue to decline due to unfavourable weather conditions and pest outbreaks leading to shrinking cultivation areas.

It’s evident that without factoring in stocks carried over from previous years, Vietnam will have only about 200,000 tons available for export from now until September.

Recently, the Agency of Foreign Trade has forecast that coffee exports in the third quarter of 2024 will decrease gradually as supplies diminish. It’s expected that new coffee supplies will only increase again starting in October when the harvest for the 2024/25 crop begins.

Thus, domestic coffee prices on 07/17/2024, are trading around VND 127,200 – 128,000/kg.

$ 1 = VND 25.218 – Source: Vietcombank.