Coffee price today 05/12/2023: sharp decrease to VND 1,200/kg

World coffee price today May 12

Coffee prices today 05/12 in the world market simultaneously decreased 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 decreased deeply by $88/ton (equivalent to 3.55%); down to $2,393/ton.

And the price of coffee delivered in September 2023 on this floor also decreased by $88/ton (equivalent to 3.58%); at $2,372/ton.

The price of Arabica coffee on the New York Stock Exchange for delivery in July 2023 fell sharply by 2.95 cents/lb (equivalent to 1.59%); to 183.00 cents/lb.

For the September delivery term, the price of coffee on the exchange decreased by 2.85 cents/lb (equivalent to 1.55%), to 180.85 cents/lb.

World coffee prices today plummeted to over 3.5% on the London exchange. This is also the strongest drop of Robusta coffee in the past 10 days when liquidation took place on the exchange.

The reason is due to the recovery of the dollar as well as the increase in jobless claims in the US. In addition, the London exchange is still in an overbought position and the inventory has increased sharply.

Similar to the strong decline, the price of Arabica coffee on the New York exchange also went down when it fell more than 1.5%. The reason is that the main growing areas in Brazil are dry, speeding up the harvest of the new beginning of crop harvesting. 

However, standard inventory wages on the New York Stock Exchange are recording a sharp drop to the lowest level in the past 5 months. As of May 10, the inventory was only 649,830 bags.

And this is the factor that helps the price of Arabica coffee to limit the sharp decline when the London exchange is pulling this exchange together.

Thus, the price of coffee today 05/12/2023 in the world market decreased sharply compared to yesterday.

Domestic coffee price today May 12

Coffee price today 05/12 in the domestic market decreased sharply from VND 1,000 - 1,200/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 today at VND 52,800/kg.

In Cu M'gar district (Dak Lak), the price of coffee today remained at VND 53,200/kg. In Ea H'leo and Buon Ho districts, today's coffee price in Dak Lak is at VND 53,100/kg. 

Coffee prices in Gia Nghia and Dak R'lap of Dak Nong province today were purchased at VND 53,200 and VND 53,100/kg, respectively.

In Gia Lai, the price of coffee in Chu Prong today is at VND 53,100/kg; while Pleiku and La Grai are holding the same level of VND 53,000/kg.

The price of coffee today in Kon Tum is VND 53,100/kg.

The domestic coffee price today decreased sharply, ending the series of consecutive increases in recent days. Currently, in the domestic coffee market, the price has fallen to VND 53,000/kg.

Mr. Nguyen Xuan Hien - Chief of Office of the Vietnam Coffee Cocoa Association (VICOFA) said that domestic businesses having difficulty in purchasing goods led to the sharp increase in coffee prices in recent days, despite decreasing exports.

Currently, the harvest has been completed, but people still hold the merchandise, waiting for the price to rise, preventing businesses from making purchases. 

At the same time, this year, the purchasing power of most coffee exporters is weak due to limited capital in the context of relatively high-interest rates and erratic exchange rate fluctuations.

Recently, the Agency of Foreign Trade forecast that the rate of increase in coffee prices in the remaining 2 months of the second quarter of 2023 may slow down due to pressure from macro factors. 

Thus, the price of coffee today 05/12/2023 in the domestic market traded around the threshold of VND5 2,800 - 53,200/kg.