Coffee prices on 05/03/2024: Sharp drop to VND 130,000/kg

Coffee prices on May 3 globally

On the world market, both London and New York exchanges witnessed significant declines on May 3.

Robusta prices on the London market for July 2024 delivery dropped by as much as $ 298 to $ 3,680/ton. And for September 2024 delivery, it decreased by an additional $ 291 to $ 3,617/ton.

Meanwhile, on the New York market, Arabica prices for July 2024 delivery plunged by 9.7 cents to 206.30 cents/lb. And for September 2024 delivery, it fell by an additional 9.3 cents to 204.75 cents/lb. 

Today's world coffee prices continue to decline sharply, with Arabica losing over 4.3% and Robusta plummeting by 7.4%.

The recovery in supply on the ICE market has weighed heavily on coffee prices after Arabica inventories monitored by ICE hit their highest level in a year and Robusta inventories rose to their highest level in five months.

As a result, Arabica prices have plummeted recently as commodity indices rebalance, fund sources continue to liquidate long positions, and there are forecasts of rain in Brazil next week along with an increase in inventories.

For Robusta, traders say prices will have to rise further to attract farmers in Vietnam, the leading coffee producer, to sell regularly. However, technically, if fund sources maintain the pace of liquidating long positions (meaning selling to liquidate previously purchased orders), the London market is at risk of falling to around $3,650/ton.

From a technical standpoint, the Arabica market appears more stable, as it has not been affected by recent overheated increases like the London market.

Thus on 05/03/2024, world coffee prices continued to decline sharply compared to yesterday.

Coffee prices on May 3 domestically

In the domestic market, coffee prices on May 3 dropped by up to VND 2,000/kg compared to yesterday.

Specifically, in Lam Dong province, the districts of Di Linh, Bao Loc, and Lam Ha are trading at the same price range of VND 130,000/kg.

In Dak Lak province, the Cu M'gar district is currently purchasing at VND 130,500/kg. Meanwhile, Ea H'leo and Buon Ho districts are trading at VND 130,400/kg.

In Dak Nong province, traders in Gia Nghia and Dak R'lap districts are trading at VND 130,700/kg and VND 130,600/kg, respectively.

In Gia Lai province, Chư Prông district is trading at VND 130,500/kg, while Pleiku and La Grai districts are both maintaining a price of VND 130,400/kg.

The purchase price in Kon Tum province today is VND 130,400/kg.

The domestic coffee price continues to decline today, bringing the commodity down to the threshold of VND 130,000/kg. 

Thus, the domestic coffee price on 05/03/2024 is trading around the range of VND 130,000 - 130,700/kg.

$ 1 = VND 25.113 - Source: Vietcombank.