Coffee prices on 05/12/2024: Continuing sharp decline this week

Coffee prices on May 12 globally

On the global market, both the London and New York exchanges maintained stability on May 12.

Specifically, the price of Robusta coffee on the London exchange for July 2024 delivery remained at $ 3,440/ton. The term price for September 2024 delivery remained steady at $ 3,362/ton.

Meanwhile, on the New York exchange, the price of Arabica coffee for July 2024 delivery continued to hover around 201.15 cents/lb. Contracts for September 2024 delivery stood at 199.95 cents/lb.

Global coffee prices remained stable on May 12. Summarizing this week, Arabica prices for July 2024 delivery decreased slightly by 0.55 cents/lb, while Robusta prices on the London exchange continued to decline sharply by an additional $ 101/ton.

Global coffee prices fell sharply as speculators continued to sell off to take profits, and as export data and inventory levels increased on both exchanges.

Moreover, favourable weather conditions in key coffee-growing regions in Vietnam and Brazil contributed to further price declines.

During the week, the market also saw some gains following the assessment that insufficient rainfall in Vietnam and Brazil could lead to a decrease in next season's output.

Harvesting activities for Robusta in Brazil are currently underway, but the production of bitter-tasting coffee could decrease by 5-10% compared to initial estimates.

Meanwhile, in Indonesia, harvesting activities for the current crop will be postponed until June, instead of April as usual, due to late ripening of the fruit.

Thus, global coffee prices on 05/12/2024 remained unchanged compared to yesterday.

Coffee prices on May 12 domestically

In the domestic market, the coffee market on May 12 continued to remain stable compared to yesterday.

Specifically, in Lam Dong province, the districts of Di Linh, Bao Loc, and Lam Ha are trading at VND 99,000/kg.

In Dak Lak province, the district of Cu M'gar is purchasing at VND 100,000/kg today. Meanwhile, Ea H'leo and Buon Ho districts are trading at VND 99,900/kg.

In Dak Nong province, traders in Gia Nghia and Dak R'lap are trading at VND 100,000 and VND 99,900/kg, respectively.

In Gia Lai province, Chư Prong district is trading at VND 99,500/kg, while Pleiku and La Grai are maintaining prices at VND 99,400/kg.

The purchasing price in Kon Tum today is VND 99,500/kg.

The domestic coffee prices today remained stagnant with the highest threshold reaching VND 100,000/kg. Summarizing the week, this agricultural product saw a sharp decline of an additional VND 1,500/kg.

Though this reduction is still relatively high, it's considerably less severe compared to the previous week when domestic coffee prices plummeted by VND 30,000/kg.

Thus, on 05/12/2024, domestic coffee prices are trading around the range of VND 99,500 - VND 100,000/kg.

$ 1 = VND 25.154 - Source: Vietcombank