Coffee prices on 04/13/2024: surging over VND 110,000/kg

Coffee prices on April 13 in the world

In the world, on April 13, both the London and New York exchanges continued to rise sharply.

Specifically, the price of Robusta on the London exchange for May 2024 delivery increased by an additional $ 57; reaching $ 3,900/ton. And the July 2024 delivery surged by $ 62; reaching $ 3,852/ton.

Meanwhile, on the New York exchange, the price of Arabica for May 2024 delivery increased by 4.3 cents to reach 224.65 cents/lb. Additionally, the July 2024 delivery increased by 3.1 cents to reach 220.45 cents/lb.

World coffee prices today continue to surge due to concerns about the harvest in Brazil and also in Vietnam. Poor crops in Vietnam along with shipping disruptions in the Red Sea have led to a sharp increase in Robusta prices and boosted demand for this commodity from Brazil.

Experts expect Robusta production in Brazil to increase further in 2024. Brokerage firm StoneX forecasts Brazil's 2024 Robusta production to be around 22.7 million bags compared to 21.5 million bags in 2023. Currently, there is not much inventory left from the 2023 harvest.

Experts assess that the new Robusta crop from Brazil will start hitting the market around June or July. Until then, the Robusta market still largely depends on Vietnam's exports.

Thus, coffee prices worldwide on 04/13/2024 continue to rise compared to yesterday.

Coffee prices on April 13 in the domestic market

In the domestic market, this agricultural product continues to rise sharply by an additional VND 1,200/kg compared to yesterday.

Specifically, in Lam Dong province, the districts of Di Linh, Bao Loc, and Lam Ha are trading at the same level of VND 109,000/kg.

In Dak Lak, Cu M'gar district is currently purchasing at VND 109,800/kg. Meanwhile, Ea H'leo and Buon Ho are trading at VND 109,700/kg.

In Dak Nong province, traders in Gia Nghia and Dak R'lap are trading at VND 110,000 and VND 109,900/kg, respectively.

In Gia Lai province, Chu Prong district is trading at VND 109,500/kg, while Pleiku and La Grai are both maintaining a trading price of VND 109,400/kg.

Meanwhile, the purchase price in Kon Tum today is VND 109,500/kg.

Domestic coffee prices today continue to soar, reaching a new record level of VND 110,000/kg.

Major companies like Nestle Vietnam and Coffee Ngon Company have been discussing the issue of broken coffee supply chains over the past 2 years. Purchasing this agricultural product domestically is becoming increasingly difficult and risky.

Therefore, despite aiming to maintain the purchase and consumption of Vietnamese coffee, domestic enterprises also have to consider importing from other countries to sustain the production activities of processing plants.

Mr. Le Duc Huy, General Director of Simexco Dak Lak Company, assesses that from the beginning of the 2023/24 crop year until now, the coffee industry has overcome an unpredictable "great flood". While farmers are enthusiastic, export enterprises are struggling.

The skyrocketing price of this agricultural product has caused some units to cancel contracts, fail to deliver, and break supply chains. Export companies cannot deliver to contracts signed at low prices and are forced to buy at higher prices to deliver to partners. However, as prices continue to rise, export companies are again facing contract cancellations, leading to cumulative losses.

According to Mr Le Duc Huy, contract cancellations do not paint the entire picture of the domestic coffee industry, as there are still companies willing to deliver to partners even at a loss.

Thus, domestic coffee prices on 04/13/2024, are trading around the range of VND 109,000 - 110,000/kg.