Coffee price: Why is the market soaring?

World coffee price

In the world market, the coffee price today remains stable at both two major coffee exchanges. 

At the end of the latest trading session, the price of Robusta coffee in London delivered in July 2021 increased by US$66 per ton at US$ 1,583 per ton while that of September rose by US$67 per ton at US$1,605 per ton. 

The price of Arabica coffee at the New York exchange delivered in July 2021 increase 7 cents per lb at 162.35 cents per lb and the price in September 2021 increased by 7 cents per lb at 164.3 cents per lb. 

Coffee prices rebounded strongly on both futures exchanges due to concerns over adverse weather in Brazil. It is forecasted a three-month dry winter over the main coffee growing regions, which is favorable for frost formation on upcoming full moon nights. This is an opportunity for "speculative bulls" to push up the price even though the net buying position on both exchanges is now very high.

Analyst Nguyen Quang Binh explained that coffee markets have soared hot in just three days due to these below reasons: 

• The three-day rally that started from Wednesday morning to the end of last Friday in Colombia ignited the price on the New York Stock Exchange and the Robusta floor. Colombia is the world's largest exporter of wet-processed Arabica coffee.
• Concerns over unfavorable weather in Brazil. 
• Investors anxious to buy more as President Joe Biden will seek US$6 trillion in U.S. federal spending for 2022 fiscal, although it is not known whether the US Senate will approve or not. 

As a result, the global coffee price today May 31 remains high.

Domestic coffee price today

Coffee price today May 31 in the domestic market remained stable, close to the threshold of VND35 million per ton.

In detail, coffee in the districts of Di Ling, Bao Loc, and Lam Ha in Lam Dong province today was delivered at VND33.600 per kilogram. 

In Cu M’gar (Dak Lak), the coffee price today reached VND34.500 per kilogram while that of Ea H’leo (Dak Lak) and Buon Ho (Dak Lak) remained at VND34.400 per kilogram. 

In Gia Nghia and Dak R'lap of Dak Nong province, coffee prices today were purchased at VND34,400 and VND 34,300 per kilogram respectively.

The price of coffee today in Chu Prong, Gia Lai province was at VND 34,400 per kilogram, and that of Pleiku and La Grai was nearly the same at VND 34,300 per kilogram. Meanwhile, the price of coffee in Kon Tum province was purchased at VND34,400 per kilogram.

Today's agricultural market in both coffee and pepper in the country continues to remain at a high level. 

Thus, the coffee price today May 31, 2021, in the domestic market was trading around the threshold of VND33,600 - VND34,500 VND per kilogram.