Coffee prices on 04/25/2024: Robusta continues to soar

Coffee prices on April 25 globally

On the global market, both the London and New York exchanges experienced strong increases on April 25.

Specifically, on the London exchange, the May 2024 Robusta contract surged by $ 149, reaching $ 4,266/ton. Meanwhile, the July 2024 contract saw a substantial increase of $ 137, reaching $ 4,181/ton.

On the New York exchange, the May 2024 Arabica contract jumped by 4.05 cents, reaching 225.90 cents/lb. Similarly, the July 2024 contract surged by 4.15 cents, reaching 224.25 cents/lb.

World coffee prices today surged significantly. The sharp increase in Robusta prices on the London market by over 3.3% has driven up Arabica prices as well.

According to experts, the lingering effects of last year's El Nino weather pattern extending into early 2024 have had severe consequences for crops, especially coffee, which requires ample water. This crop is currently grappling with the worst drought in years in Vietnam.

Meanwhile, other coffee-producing countries like Indonesia have experienced excessive rainfall recently, which could potentially hinder the upcoming 2024 harvest.

Experts also assess that the Robusta market seems to be completely immune to technical factors. Robusta prices may need to await the decisive reactions from the upcoming harvests in Indonesia and Brazil to determine their trajectory.

Thus, global coffee prices on 04/25/2024 surged significantly compared to the previous day.

Coffee prices on April 25 domestically

In the domestic market, coffee prices on April 25 rose by an additional VND 1,600/kg compared to the previous day.

Specifically, in Lam Dong province, the districts of Di Linh, Bao Loc, and Lam Ha are trading at the same level of VND 130,500/kg.

In Dak Lak province, the district of Cu M'gar is purchasing at VND 131,500/kg. Meanwhile, the districts of Ea H'leo and Buon Ho are trading at VND 131,400/kg.

In Dak Nong province, traders in Gia Nghia and Dak R'Lap are trading at VND 131,500 and VND 131,400/kg, respectively.

In Gia Lai province, the district of Chu Prong is trading at VND 131,000/kg, while Pleiku and La Grai are maintaining the same price of VND 131,000/kg.

The purchasing price in Kon Tum province today is VND 131,000/kg.

The domestic coffee price today continues to surge, surpassing the threshold of VND 131,000/kg.

Coffee prices in Vietnam are rising sharply and are tense. In fact, there are very few transactions of actual goods in the market during this period.

According to VICOFA, the main reason for this commodity's increase comes from the lowest coffee inventory from Vietnam's previous crop in history.

In previous years, Vietnam usually had an inventory of about 120 - 150 thousand tons. However, in the 2023 crop year, the inventory was very low, only 50% compared to previous years. Meanwhile, the production of the 2023/24 crop year is also estimated to decrease by 10% compared to the previous crop year.

This commodity has seen high price increases recently because Vietnam is currently the only country harvesting coffee in the world. Meanwhile, Indonesia has to wait until around April-May, and Brazil around July to harvest.

Thus, the domestic coffee price on 04/25/2024 is trading around the range of VND 131,500 - 131,500/kg.

$ 1= VND 25.137 - Source: Vietcombank