Coffee price on 03/16/2024: Approaching VND 93,000/kg

Coffee prices on March 16 in the world

In the world, the London and New York exchange prices on March 16 fluctuated in opposite directions.

In particular, the price of Robusta on the London exchange for delivery in May 2024 increased by $ 31; reaching $ 3,308/ton. And the price for the July 2024 delivery term increased by $ 28; at $ 3,211/ton.

On the New York exchange, the price of Arabica delivered in May 2024 decreased slightly by 0.9 cents; to 182.95 cents/lb. And the July 2024 delivery term decreased by 0.6 cents; at 181.65 cents/lb.

World coffee prices today continued to increase slightly on the London exchange but decreased slightly on the New York exchange. The increase in USD pushes Arabica prices to decrease in the opposite direction. As of the time of the survey, the DXY index measures the greenback's fluctuations against 6 major currencies (EUR, JPY, GBP, CAD, SEK, CHF) and rose to the 103.45 mark.

The USD rose to its highest level in more than a week after a series of published data showed that the US economy remained stable with some minor weaknesses. This could lead the Fed to maintain higher interest rates for longer or reduce the number of rate cuts this year. 

The Cecafé Association said that Brazil exported a record of more than 1 million bags of Robusta to the world market in the first 2 months of the year, increasing by 6.3 times (531.2%) over the same period in 2023 and accounting for 13.5% of the country's total green coffee exports. 

Over the 12 months up to February 2024, Brazil exported a total of 5 million bags of Robusta, up 5.7 times over a year ago. Brazilian Robusta is said to fare better than its competitors and is filling the gap left by Vietnam and Indonesia - two leading producers - left behind due to crop failure.

Currently, in addition to Brazil, a number of African countries are also starting to enter the race to grow Robusta. A typical example is Uganda. This country is focusing on developing Robusta because it is easy to grow and has high productivity. Roasters also started using Ugandan products.

Thus, world coffee prices on 03/16/2024 fluctuated slightly compared to yesterday.

Coffee prices on March 16 in the country

The domestic market price on March 16 increased sharply by VND 800/kg compared to yesterday. 

Specifically, in Lam Dong province, 3 districts of Di Linh, Bao Loc and Lam Ha are trading at the same level of VND 92,000/kg. 

In Dak Lak, Cu M'gar district today is purchasing at VND 92,700/kg. Ea H'leo and Buon Ho districts are trading at a price of VND 92,600/kg.

In Dak Nong province, traders Gia Nghia and Dak R'lap are trading at VND 92,900 and VND 92,800/kg, respectively. 

In Gia Lai province, Chu Prong district is trading at VND 92,600/kg, while Pleiku and La Grai are both maintaining the price of VND 92,500/kg.

The purchasing price in Kon Tum today is VND 92,600/kg.

Domestic coffee prices today continue to increase and are about to reach VND 93,000/kg.

High demand has pushed Robusta prices in the Central Highlands provinces to a new record of VND 92,000/kg on March 13, an increase of more than 33% compared to the beginning of the year and nearly double the same period last year.

Mr. Le Duc Huy - General Director of Simexco DakLak said, "Demand is very high. Small and medium-sized roasters are also in a situation of lacking supply, but were forced to accept record high prices, in the context of freight rates also rising due to Red Sea tensions".

However, Vietnam is said to be facing strong competition from Brazil as foreign companies begin roasting the country's products.

In addition, if Robusta prices continue to increase but Arabica prices still decrease, roasters may return to using Arabica beans. This will certainly be detrimental to Robusta beans and prices may drop. 

Thus, the domestic coffee price on 03/16/2024 is trading around the threshold of VND 92,000 - 92,900/kg.