Coffee price on 03/18/2024: Above the threshold of VND 93,000/kg

Coffee prices on March 18 in the world

In the world, the London and New York exchange prices on March 18 remained stable.

In particular, Robusta's price on the London exchange for delivery in May 2024 remained at $ 3,308/ton. And the July 2024 delivery term is anchored at $ 3,211/ton.

On the New York exchange, Arabica's price for delivery in May 2024 remained at 182.95 cents/lb. And the July 2024 delivery date remains at 181.65 cents/lb.

World coffee prices today continue to move sideways. Last week, the price of Robusta futures delivered in May increased slightly by $ 11, while the price of Arabica futures delivered in May decreased by 2.25 cents.

In a recent report, the Import-Export Department said that despite concerns that supply is being tightened due to international maritime transport problems and increasing global demand, it is forecasted that world coffee prices will be under downward pressure in the near future due to sell-off activities of funds and speculators.

The above assessment is based on the following factors. ICE inventory reporting data increased significantly on both exchanges. As of February 23, robusta coffee inventories certified and monitored by the London exchange increased by 2,910 tons (equivalent to an increase of 14.5%) compared to the previous week, up to 23,000 tons (about 383,333 bags, 60 kg/bag).

In addition, Vietnam's coffee exports are estimated to increase sharply in the first 2 months of 2024 and Brazilian coffee production is expected to be higher in the 2024-2025 crop year than previous forecasts. This is due to the dry weather easing while fluctuations in the USD/BRL exchange rate have encouraged Brazilians to boost export coffee sales.

At the end of February, the increase in Robusta prices slowed down, while Arabica prices decreased due to increased risk concerns about the possibility of the US economy returning to recession, causing funds and speculation to shift capital flows to look for markets with more attractive profits. In addition, reports of a sharp increase in inventory have caused a sell-off by funds and speculators, affecting coffee prices. In addition, according to the latest ICO report, global coffee production in the 2023/24 crop year increased by 5.8% compared to the previous crop year to 178 million bags, in which the output of Arabica coffee increased by 8.8% to 102.2 million bags and Robusta coffee increased by 2.1% to 75.8 million bags.

Consumption is expected to increase by 2.2% to 177 million bags, the world coffee market will have a surplus of 1 million bags in the 2023-2024 crop year.

Thus, world coffee prices on 03/18/2024 remained unchanged compared to yesterday.

Coffee prices on March 18 in the country

The domestic market on March 18 had no new fluctuations 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 92,400/kg. 

In Dak Lak, Cu M'gar district today is purchasing at VND 93,000/kg. Ea H'leo and Buon Ho districts are trading at a price of VND 92,900/kg.

In Dak Nong province, traders Gia Nghia and Dak R'lap are trading at VND 93,200 and VND 93,100/kg, respectively. 

In Gia Lai province, Chu Prong district is trading at VND 93,000/kg, while Pleiku and La Grai are maintaining the same price at VND 92,900/kg.

The purchasing price in Kon Tum today is VND 92,900/kg.

Domestic coffee prices today are still above the high threshold of VND 93,000/kg. Last week, the domestic market continued to increase by nearly VND 2,500/kg.