Coffee prices on 03/23/2024: Simultaneous slight decrease

Coffee prices on March 23 around the world

In the world, the London and New York exchange prices on March 23 turned down slightly.

In particular, the price of Robusta on the London exchange for delivery in May 2024 decreased by $ 27; about $ 3,358/ton. And the July 2024 delivery term price only decreased by $ 24; at $ 3,264/ton.

On the New York exchange, the price of Arabica delivered in May 2024 decreased slightly by 0.85 cents; and fell to 184.85 cents/lb. And the July 2024 delivery term decreased by 0.65 cents; at 184 cents/lb.

World coffee prices today decreased slightly on both the London and New York exchanges because they have entered the overbought zone and inventories on the exchange are at a high level. In addition, the strong increase in the USD also pushed the two exchanges under pressure to reduce futures prices.

At the time of the survey, the DXY index measuring greenback fluctuations with 6 major currencies (EUR, JPY, GBP, CAD, SEK, CHF) increased by 0.98%, reaching 104.47.

Thus, world coffee prices on 03/23/2024 simultaneously decreased compared to yesterday.

Coffee prices on March 23 in the country

The domestic market price on March 23 decreased slightly by VND 100/kg compared to yesterday. 

Specifically, in Lam Dong province, 3 districts of Di Linh, Bao Loc and Lam Ha are trading at the same level of VND 94,200/kg.

In Dak Lak, Cu M'gar district today is purchasing at VND 94,600/kg. Ea H'leo and Buon Ho districts are trading at a price of VND 94,500/kg.

In Dak Nong province, traders in Gia Nghia and Dak R'lap are trading at VND 94,800 and VND 94,700/kg, respectively.

In Gia Lai province, Chu Prong district is trading at VND 94,600/kg, while Pleiku and La Grai are maintaining the same price at VND 94,500/kg.

The purchasing price in Kon Tum today is VND 94,600/kg.

Domestic coffee prices today decreased slightly, still helping this agricultural product stay firmly at the threshold of VND 94,000/kg.

Importers are now turning to buying from India and Brazil because Vietnamese goods are at high prices. From April 2024, when Brazil enters the season, the coffee market may decrease in price.

But Mr. Nguyen Nam Hai - Chairman of Vicofa said that this agricultural product will continue to increase in price in the near future. Even when Indonesia and Brazil are about to enter the harvest season, this is not a strong enough factor to help domestic prices cool down.

Currently, coffee harvesting activities for the 2023/24 crop year have almost ended. Vicofa's output is forecast to decrease by 10% compared to the previous crop year to 1.6 million tons. The reason is that people converted part of the coffee area to growing durian, but thanks to the still high productivity, this year's output is equal to last year.

Meanwhile, the inventory of old crops transferred to new crops is the lowest in many years, only 1/3 of the previous crop year. The 2023/24 harvest has just ended but the Vietnamese domestic market has already begun to experience shortages.

High demand along with limited supply pushed Robusta prices in the Central Highlands provinces to a new record of VND 92,000/kg on 03/13/2024, increasing more than 33% compared to the beginning of the year and nearly doubling the same period last year.

Currently, for each hae of coffee, after deducting costs, people can earn a profit of more than VND 220 million. Rising prices are having a strong impact on people's buying and selling psychology, causing the export turnover of this agricultural product to increase.

Thus, the domestic coffee price on 03/23/2024 is trading around the threshold of VND 94,200 - 94,800/kg.