Coffee price on 06/8/2023: sharp increase to nearly VND 63,000/kg

World coffee price on June 8

Coffee prices on June 8 in the world market 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 $60/ton (equivalent to 2.3%); up to $2,674/ton.

And the price of coffee delivered in September 2023 on this exchange is also increasing by $53 (equivalent to 0.35%); at $2,636/ton.

The price of Arabica coffee on the New York exchange delivered in July 2023 increased sharply by 2.8 cents/lb (equivalent to 1.53%); to 185.40 cents/lb.

For the September delivery term, the price of coffee on this exchange increased by 2.15 cents/lb (equivalent to 1.2%), at 181.70 cents/lb

World coffee prices today simultaneously increased sharply. The price of coffee on the London exchange increased by over 2%, while the New York exchange increased by over 1.2%.

The strong increase in Robusta coffee has also led to an increase in Arabica coffee, in the context of high demand but scarce supply.

The US Department of Agriculture expects Indonesia's coffee production this year to drop by up to 20 per cent from last season's to 8.4 million bags, as excessive rain during the flowering stage inhibits pollination.

Meanwhile, not only Vietnam and Indonesia but even Brazil's Robusta coffee - the third largest Robusta coffee-producing country in the world - has also been negatively affected by the drought. 

Coffee prices on the London exchange still maintained their upward momentum, due to the report that Robusta coffee inventories as of June 6 continued to decrease by 1,970 tons. This is a 2.41% decrease compared to a week earlier, down to 79,640 tons.

Thus, the price of coffee on 06/8/2023 in the world market simultaneously increased sharply compared to yesterday.

Domestic coffee price on June 8

Coffee price on June 8 in the domestic market increased by VND 1,000/kg compared to yesterday.

Specifically, the price of Lam Dong coffee (in 3 districts of Di Linh, Bao Loc and Lam Ha) is being purchased at VND 62,300/kg today.

In Cu M'gar district (Dak Lak), the price of coffee today remained at VND 62,800/kg. In Ea H'leo and Buon Ho districts, today's coffee price in Dak Lak is kept at VND 62,700/kg.

Coffee prices in Gia Nghia and Dak R'lap of Dak Nong province today were purchased at VND 62,900 and VND 62,800/kg, respectively.

In Gia Lai, the price of coffee in Chu Prong today is at 62,600 VND/kg; while at Pleiku and La Grai are holding at 62,500 VND/kg.

The price of coffee today in Kon Tum is being purchased at VND 62,600/kg.

The domestic coffee price today increased sharply and easily approached the mark of VND 63,000/kg.

Commenting on this hot uptrend, the Vietnam Coffee Cocoa Association (VICOFA) said that the reason is due to insufficient supply and demand.

The association also forecasts that from now until the end of the year, coffee exports will still be favourable when demand increases while the source of goods does not improve. However, not only farmers but also some exporters of coal have not benefited from the increase in coffee prices. 

The owner of a large coffee export business in Vietnam shared that the coffee owned by the people and retail agents is almost exhausted. Most of them are in the warehouse of foreign businesses with strong financial potential, so these businesses are the main beneficiaries of the record price increase.

Meanwhile, local coffee roasters and processors are having a lot of headaches when they can't buy raw materials.

Thus, the price of coffee today on 06/8/2023 in the domestic market traded around the threshold of VND 62,300 - 62,900/kg.

$1 = VND 23,290.00 - Source: Vietcombank