Coffee prices on 03/27/2024: Continuing strong upward momentum

Coffee prices on March 27 in the world

In the world, the London and New York exchange prices on March 27 continued to increase.

In particular, the price of Robusta on the London exchange for delivery in May 2024 increased by $ 48; reaching $ 3,465/ton. And the term for delivery in July 2024 increased sharply by $ 49; at $ 3,375/ton.

On the New York exchange, the price of Arabica delivered in May 2024 increased to 2.4 cents; reaching 188.05 cents/lb. And the term for delivery in July 2024 increased sharply by 2.35 cents; at 187.25 cents/lb.

World coffee prices today increased sharply. Robusta prices continue to set new records due to extremely high global demand. The USD exchange rate supports most commodity prices when large funds and speculation return to increase purchases.

Drought news in Vietnam - the world's largest Robusta producer - makes the output of the 2024/2025 crop year likely to decrease by 10% compared to the current crop.

Vicofa Association predicts that the production of the above crop year will only reach about 1.6 - 1.7 million tons, lower than the 1.78 million tons of the previous 2022/2023 crop year. 

And rising Robusta futures prices also pulled Arabica back to an upward trend.

Thus, world coffee prices on 03/27/2024 increased sharply compared to yesterday.

Coffee prices on March 27 in the country

The domestic market on March 27 increased sharply by VND 1,200/kg compared to yesterday.

Specifically, in Lam Dong province, 3 districts of Di Linh, Bao Loc and Lam Ha are trading at the same price level of VND 97,200/kg.

In Dak Lak, Cu M'gar district today is purchasing coffee at VND 97,600/kg. Ea H'leo and Buon Ho districts are trading at a price of VND 97,500/kg.

In Dak Nong province, traders in Gia Nghia and Dak R'lap are trading at VND 97,600 and VND 97,600/kg, respectively.

In Gia Lai province, Chu Prong district is trading at VND 97,500/kg, while Pleiku and La Grai are both maintaining the price of VND 97,400/kg.

The purchasing price in Kon Tum today is VND 97,400/kg.

Domestic coffee prices today continue to increase strongly and are aiming for a high level of VND 98,000/kg. 

Robusta is still a product consumed globally, even considered by many people to be an essential commodity that cannot be abandoned. But for farmers, if growing coffee is not profitable, they are willing to give up, which will be a threat to the world's supply. This year, the Central Highlands is in drought, and a serious Robusta shortage is still ahead. 

Therefore, to have a sustainable source of goods to serve the market, processors need to share profits adequately with Vietnamese farmers, not forcing prices on them during the season like before.

Mr. Thai Nhu Hiep - Vice President of Vicofa said that the current price level may be temporary and local. But he also confidently said that the price of these agricultural products will not be as cheap as before.

Mr. Hiep also recommended that roasters should prepare for the new level of raw material prices (at least VND 50,000 - 70,000/kg) to ensure profits for growers and business calculations.

Meanwhile, Vietnam's Robusta is at a "golden opportunity" to build a national brand when it has all the following factors: high quality, good value, modest output. 

Thus, the domestic coffee price on 03/27/2024 is trading around the threshold of VND 97,200 - 97,600/kg.