Coffee price on 06/16/2023: Sharp increase to nearly VND 67,000/kg

World coffee price on June 16

Coffee prices on June 16 in the world market simultaneously increased sharply at both major exchanges.

At the time of the survey, the price of Robusta coffee on the London exchange for delivery in July 2023 increased sharply by $79/ton (equivalent to 2.9%); to $2,804/ton.

And the price of coffee delivered in September 2023 on this exchange increased by $63/ton (equivalent to 2.34%), at $2,757/ton.

The price of Arabica coffee on the New York exchange delivered in July 2023 increased by 2.6 cents/lb (equivalent to 1.41%); to 187.00 cents/lb.

For the September delivery term, the price of coffee on this exchange increased by 2.8 cents/lb (equivalent to 1.55%); at 182.95 cents/lb.

The world coffee price today continued to increase strongly on both exchanges. The London exchange had up to 3 consecutive increasing sessions, while the New York exchange had a second increasing session.

After the Fed stopped raising interest rates in the last meeting, the USD fell sharply and created conditions for investors to turn to gold and commodities (including coffee).

The price of Robusta coffee has already increased, but is now even higher when on June 8, the US National Oceanic and Atmospheric Administration (NOAA) announced: "El Nino has begun".

According to experts, The scarcity of supply along with adverse weather and prolonged hot weather will make coffee production narrower in the coming time and cause coffee prices to be continuously pushed up.

Thus, the price of coffee on 06/16/2023 in the world market increased sharply compared to yesterday.

Domestic coffee price on June 16

Coffee prices on June 16 in the domestic market turned to increase sharply by VND 1,800/kg compared to yesterday.

Specifically, the price of Lam Dong coffee (in 3 districts of Di Linh, Bao Loc and Lam Ha) is buying at VND 66,100/kg today.

In Cu M'gar district (Dak Lak), the price of coffee today remained at VND 66,700/kg. In Ea H'leo and Buon Ho districts, today's coffee price in Dak Lak is at VND 66,600/kg.

Coffee prices in Gia Nghia and Dak R'lap of Dak Nong province today were purchased at VND 66,800 and VND 66,700/kg, respectively.

In Gia Lai, the price of coffee in Chu Prong today is at VND 66,300/kg; while the price at Pleiku and La Grai are holding at VND 66,400/kg.

The price of coffee today in Kon Tum is being purchased at VND 66,600/kg.

The domestic coffee price today continued to increase for the third day in a row. The sharp increase of nearly VND 2,000/kg today has helped the domestic coffee market approach a record-high price - VND 67,000/kg.

Facing the situation that the price of Robusta coffee in the country and in the world has continuously increased sharply, experts have expressed concern.

Mr. Nguyen Quang Binh - An expert on the coffee market analyzed that, over time, the price of robusta coffee at home and abroad increase unstoppably. Many people say the reason is due to scarce supply, adverse weather, and people "addicted" to coffee needing a product with a lower price… but that is just the tip of the price fever.

If we put coffee in the context of global commodity markets, especially financial markets, other interesting aspects can be found. For example, in coffee-exporting countries like Brazil, the current operating interest rate is 13.75%, 2-3 times higher than the inflation rate. 

In contrast, importing countries such as the EU and the US, which previously have 0% interest rates, now increase the interest rates to 3-4%, additionally, banks tighten credit, causing importers to be "inundated" with interest rates. 

Mr Binh also predicted: "The liquidation sessions on the gold metal exchange, stocks, and the recovered money will be transferred to the robusta exchange. Therefore, the volume of short contracts on the exchange is also at a peak recently".

Thus, the price of coffee on 06/16/2023 in the domestic market traded around the threshold of VND 66,100 - 66,800/kg.

$1 = VND 23,330.00 - Source: Vietcombank