Coffee price on 04/04/2024: Exceeding VND 103,000/kg

Coffee price on April 4 in the world

In the world, the London and New York exchange prices on April 4 continued to increase hotly.

In particular, the price of Robusta on the London exchange for delivery in May 2024 increased by $ 149; reaching $ 3,812/ton. And the July 2024 delivery term also increased sharply by $ 147; at $ 3,727/ton.

On the New York exchange, the price of Arabica delivered in May 2024 increased to 5.85 cents; to 203.60 cents/lb. And the July 2024 delivery term increased by 5.7 cents; reaching 202.80 cents/lb.

World coffee prices today continued to increase sharply when Robusta prices on the London exchange increased by more than 4% and Arabica prices on the New York exchange increased by nearly 3%. 

According to the Vicofa Association, the impact of climate change and the El Nino phenomenon cause drought throughout coffee-growing regions globally, causing output to decline. In Vietnam alone, output will decrease by 10% in the 2023/24 crop season, as people switch to other crops.

Inventories in businesses are at a record low and low supply pushes prices up. In addition, geopolitical conflicts and tensions in the Red Sea region cause shipping costs and many other costs to increase. The price of this agricultural product also increased due to speculative activities from many financial investors.

Thus, world coffee prices on 04/04/2024 continue to increase compared to yesterday.

Coffee price on April 4 in the country

Domestically, the coffee market on April 4 increased by VND 3,100/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 102,700/kg. 

In Dak Lak, Cu M'gar district today is purchasing at VND 103,000/kg. Ea H'leo and Buon Ho districts are trading at a price of VND 103,000/kg. 

In Dak Nong province, traders Gia Nghia and Dak R'lap are trading at VND 103,200 and VND 103,100/kg, respectively.

In Gia Lai province, Chu Prong district is trading at VND 103,000/kg, while Pleiku and La Grai are both maintaining the price of VND 103,000/kg.

The purchasing price in Kon Tum today is VND 103,000/kg.

Domestic coffee prices today continue to increase sharply and easily surpass the record high of VND 103,000/kg.

According to expert Nguyen Quang Binh, the price of this agricultural product is continuously increasing because the number of sellers is very small compared to the buyers in exchange for both funds and speculation. In addition, there are concerns that recent heavy rains in Brazilian growing areas may have caused damage to coffee trees.

In the past 2 days, the increase in coffee has surprised many people. Robusta prices have increased to more than $ 300/ton, while domestic prices have increased by more than VND 4,000/kg. In the context that Robusta supply from Vietnam is scarce, global coffee prices are in a very difficult period. During this period, it is very easy to have unpredictable fluctuations beyond what is normally experienced in this market. 

While many farmers regret having no more goods to sell, businesses specializing in processing and exporting have to praise for a favour from "heaven" for not being able to "adapt" in time. Many businesses are forced to buy goods when agricultural product prices are at their peak to fulfil previously signed contracts.

The price fever of this item started at the end of last year. In November 2023, the price of this agricultural product only fluctuated around VND 59,000-60,000/kg. But just one month later, it skyrocketed to VND 69,000/kg, and by the beginning of this year, it exceeded VND 80,000/kg.

Not stopping there, when entering March 2024, the price of this agricultural product increased to VND 86,000/kg, an increase of over 30% compared to the end of last year. Next, in the next 20 days, this agricultural product became nearly 10% more expensive, up to VND 95,000/kg. Prices have more than doubled compared to the same period last year. And currently, it has exceeded VND 103,000/kg.

Thus, the domestic coffee price on 04/04/2024 is trading around the threshold of VND 102,700 - 103,200/kg.