Coffee prices on 05/31/2024: Sharp increase globally

Coffee prices on May 31 globally

In the world, both the London and New York exchanges on May 31 saw significant increases.

Specifically, Robusta prices on the London exchange for July 2024 delivery surged by $ 93 to reach $ 4,270/ton. The September 2024 delivery also increased by $ 89 to hit $4,131/ton.

Meanwhile, on the New York exchange, Arabica prices for July 2024 delivery rose by 3.55 cents to reach 233 cents/lb. The September 2024 delivery also saw a strong increase of 3.65 cents to stand at 231.95 cents/lb.

The world coffee prices continued to rise on the London exchange and sharply rebounded on the New York exchange.

The upward trend in prices has persisted since April 2024 due to unfavourable weather conditions in Vietnam affecting the supply.

Concerns about coffee crops in Brazil and Vietnam are driving buying activity in futures markets. The scarce supply of Robusta from Vietnam is a major factor contributing to the price increase.

On March 26, the Ministry of Agriculture and Rural Development forecasted that Vietnam's coffee output for the 2023/24 crop year could decrease by 20% to 1.472 million tons, marking the lowest output in four years due to drought.

Marex Group Plc predicts a global Robusta coffee deficit of 2.7 million bags in 2024/25 due to reduced production in Vietnam.

In early May, commodity prices experienced a sharp decline due to profit-taking by speculative funds and inventory recovery on the ICE exchange.

During the period from April 16 to 23, the net long position in the European market on the ICE exchange decreased by 5,042 lots, and the strengthening of the USD encouraged selling activity.

However, fundamental market factors such as coffee shortages, especially Robusta, and continued global demand remain supportive of prices in the near term.

Thus, global coffee prices on 05/31/2024 showed significant increases compared to the previous day.

Coffee prices on May 31 domestically

In the domestic market, coffee prices on May 31 increased by an additional VND 3,000/kg compared to the previous day.

Specifically, in Lam Dong province, the districts of Di Linh, Bao Loc, and Lam Ha are trading at VND 124,000/kg.

In Dak Lak province, the district of Cu M'gar is purchasing at VND 124,700/kg. Meanwhile, Ea H'leo and Buon Ho districts are trading at VND 124,600/kg.

In Dak Nong province, traders in Gia Nghia and Dak R'lấp are trading at VND 125,200 and VND 125,100/kg, respectively.

In Gia Lai province, Chư Prông district is trading at VND 124,700/kg, while Pleiku and La Grai districts are maintaining prices at VND 124,600/kg.

The purchasing price in Kon Tum province today is VND 124,600/kg.