Coffee price on 08/1/2023: a simultaneous sharp increase

World coffee price on August 1

Coffee prices today on August 1 in the world simultaneously increased sharply at both major exchanges.

At the time of the survey, the price of Robusta on the London exchange for delivery in September 2023 increased sharply by $ 33/ton, to $ 2,621/ton. And the November delivery term on this exchange increased by $ 39/ton, at $ 2,476/ton.

The price of Arabica on the New York ưxchange delivered in September 2023 hotly increased by 6.75 cents/lb; to 164.65 cents/lb. And delivery in December 2023 increased to 6.35 cents/lb; at 164.55 cents/lb.

World coffee prices today increased sharply. In, the price of Robusta increased by more than 1.2%, while the price of Arabica on the New York exchange increased hotly by over 4%. The reason for the strong increase came from the decrease in inventories and the pressure of supply shortage from now until the end of the year.

Inventories of Robusta coffee on the London e exchange on Friday, July 28 have decreased by 1,310 tons, or 2.46% compared to a week earlier. It is registered at 52,050 tons (about 867,500 bags, 60 kg/bag) - the lowest level since 2016 until now. 

Realizing the fact, last week coffee trading in Vietnam continued to be quiet due to empty stockpiles. This year, green coffee reached the highest price in history while most of the fruit failed or depreciated, helping the coffee acreage to rebound.

In Brazil, according to the Cooxupé Coffee Cooperative, production in the main Arabica growing areas has declined sharply in the past few years. Therefore, it is necessary to innovate technology and invest more care even though the price of raw Arabica coffee is somewhat cheaper in this period. 

In Indonesia - the world's 3rd largest producer of Robusta coffee, The Association of Coffee Producers and Exporters of this country (AEKI) expects coffee production in 2023 to decrease by 20% to 9.6 million bags due to rainy weather in the main growing areas.

The El Nino weather phenomenon, which is expected to develop globally in the second half of this year, also poses more risk to Robusta than to Arabica.

Thus, coffee prices on 08/1/2023 in the world simultaneously increased slightly compared to yesterday.

Domestic coffee price on August 1

Coffee price on August 1 in the country increased to VND 800/kg compared to yesterday.

Specifically, in 3 districts of Di Linh, Bao Loc and Lam Ha of Lam Dong province, they are trading at the same level of VND 66,400/kg.

In Cu M'gar district (Dak Lak), the price of coffee today remained at VND 66,900/kg. In Ea H'leo and Buon Ho districts, today's coffee price in Dak Lak is at VND 66,800/kg.

In Dak Nong province, traders Gia Nghia and Dak R'lap are purchasing at VND 67,100 and VND 67,000/kg, respectively.

In Gia Lai, Chu Prong district is trading at VND 66,800/kg, while Pleiku and La Grai are holding at VND 66,700/kg.

The purchase price at Kon Tum today is VND 66,800/kg.

The domestic coffee price today continues to increase strongly and is holding above the threshold of VND 67,000/kg.

Thus, the price of coffee on 08/1/2023 in the country traded around the threshold of VND 66,400-67,100/kg.

$ 1 = VND 23,490.00 - Source: Vietcombank