(VAN) Coffee prices on 08/13/2024, have surged significantly. Domestic coffee prices increased by VND 2,000, reaching a range of VND 120,000 – 121,200/kg.
Latest coffee prices on 08/13/2024
Coffee prices on August 13 globally
On the global stage, both the London and New York exchanges saw significant increases on August 13.
In detail, the price of Robusta on the London exchange for September 2024 delivery surged by $ 206 to reach $ 4,532/ton. Meanwhile, the November 2024 contract increased by $ 197, reaching $ 4,359/ton.
On the New York exchange, the price of Arabica for September 2024 delivery rose by 6.8 cents to hit 240.85 cents/lb, while the December 2024 contract saw a substantial increase of 8.3 cents, reaching 238.55 cents/lb.
Latest Arabica and Robusta prices on 08/13/2024
Today, global coffee prices have surged significantly due to renewed concerns over frost returning to Brazil’s coffee-growing regions.
Last weekend, the market saw a sharp decline on Friday following Brazil’s weather forecast for the upcoming week, which indicated warmer conditions. The risk of frost seemed to have diminished as temperatures were expected to rise.
Unexpectedly, at the start of this week, Runal Clima forecasted that temperatures in Brazil’s coffee-growing regions could drop to near-freezing levels, potentially causing damage to the country’s coffee crops.
This agricultural commodity’s prices, monitored and compiled by the International Coffee Organization (ICO), reached a new record high in July, with an average of 236.5 US cents per pound. This marks a 4.3% increase from the previous month and a significant 48.9% increase compared to the same period last year.
According to the ICO, global coffee prices peaked at 251.7 US cents/pound on July 9, as upward price pressure in the market persisted. This was not only due to a small surplus of just 1 million bags in the 2023/24 crop year but also because the supply-demand balance over the past decade recorded a production shortfall of 1.9 million bags compared to demand.
However, news of a possible rate cut by the Federal Reserve and the easing of frost in Brazil’s main production areas led to a cooling off in global coffee prices for the remainder of July.
High interest rates are increasing the cost of storing inventories, forcing traders and roasters to buy coffee under shorter-term contracts, which in turn is boosting market activity and short-term demand.
By type, Robusta continued to lead the price increases last month, rising 5.1% from the previous month to an average of 214.7 US cents per pound. Arabica prices from Brazil also rose 4.6% to 239.7 US cents per pound. Similarly, Arabica prices from Colombia and other Arabica varieties increased by 3% and 3.5%, respectively, reaching 257.8 US cents per pound and 257.1 US cents per pound.
On the London futures market, Robusta prices on the ICE exchange rose by 6.1%, reaching 193.9 US cents/pound, the highest level since June 1977. Meanwhile, on the New York futures market, Arabica prices increased by 3.6% to 234.6 US cents/pound.
As a result, the price gap between these two coffee types narrowed by 6.7% to 40.7 US cents per pound in July.
Thus, global coffee prices on 08/13/2024, have surged significantly compared to yesterday.
Coffee prices on August 13 domestically
In the domestic market, coffee prices on August 13, have increased by VND 2,000 compared to yesterday.
Specifically, in Lam Dong province, the districts of Di Linh, Bao Loc, and Lam Ha are all trading at VND 120,000/kg.
In Dak Lak province, Cu M’gar district is currently buying at VND 121,000/kg, while Ea H’leo and Buon Ho districts are trading at VND 120,900/kg.
In Dak Nong province, traders in Gia Nghia and Dak R’lap are trading at VND 121,200/kg and VND 121,100/kg, respectively.
In Gia Lai province, Chu Prong district is trading at VND 121,000/kg, while Pleiku and La Grai districts are holding steady at VND 120,000/kg.
In Kon Tum province, the purchase price today is VND 121,000/kg.
Domestic coffee prices today have also risen sharply, pushing this agricultural commodity up to the VND 121,000/kg mark.
Thus, domestic coffee prices on 08/13/2024, are trading around the range of VND 120,000 – 121,200/kg.
$ 1 = VND 24.920 – Source: Vietcombank.
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