Coffee prices on 06/18/2024: Strong rebound

Coffee prices on June 18 globally

On the global markets, both the London and New York exchanges saw simultaneous increases on June 18.

On the London exchange, Robusta coffee for September 2024 delivery increased sharply by $ 48, reaching $ 4,057/ton. The November 2024 delivery also rose by $ 48, standing at $ 3,915/ton.

On the New York exchange, Arabica coffee for July 2024 delivery increased by 3 cents, reaching 227.15 cents/lb. The September 2024 delivery increased by 2.9 cents, at 227.30 cents/lb.

Today, global coffee prices have surged again. According to experts, there are three main reasons for this significant increase:

- Key coffee-growing regions in Brazil experienced less rainfall than usual over the past weekend. This comes at a critical time as the country is at the peak of its harvest season.

- The USD has cooled off as the EUR has recovered. As of the latest survey, the DXY index, which measures the greenback's fluctuations against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF), has fallen to 105.33.

- The market remains worried about the supply from Vietnam. In recent months, Vietnam's export volumes have steadily declined, leading to concerns about the continuous supply of Robusta from the domestic market.

Thus, global coffee prices on 06/18/2024, have risen significantly compared to yesterday.

Coffee prices on June 18 domestically

In the domestic market, coffee prices on June 18, have surged by VND 1,000 compared to yesterday.

Specifically, in Lam Dong province, the three districts of Di Linh, Bao Loc, and Lam Ha are trading at the same level of VND 120,000/kg.

In Dak Lak, Cu M'gar district is buying at VND 121,000/kg today. Meanwhile, Ea H'leo and Buon Ho districts are trading at VND 120,900/kg.

In Dak Nong province, traders in Gia Nghia and Dak R'lap are respectively trading at VND 121,200 and VND 121,100/kg.

In Gia Lai province, Chu Prong district is trading at VND 121,000/kg, while Pleiku and La Grai are both holding at VND 120,900/kg.

The purchase price in Kon Tum today is VND 121,000/kg.

Domestic coffee prices surged today, pushing the commodity to the VND 121,000/kg mark.

At the end of March 2024, the Ministry of Agriculture and Rural Development announced that Vietnam's coffee production for the 2023/24 crop year could decrease by 20% to 1.47 million tons, the lowest in four years, due to drought. This figure is lower than Vicofa's earlier forecast of a 10% decrease to 1.6-1.7 million tons.

A representative from a business noted that low inventory from last year, coupled with reduced production, has led to an early shortage this year, starting from February.

Currently, many companies do not have enough reserves to sell until the new harvest. Some have even temporarily halted exports due to a lack of stock, and certain companies are purchasing raw materials from abroad to meet production demands.

According to data from Brazil's State Foreign Trade Statistics Center (Comex Star), Vietnam imported 7,284 tons of green coffee from Brazil in the first five months of this year, tripling the amount from the same period last year.

Last year, Vietnam imported 8,182 tons of coffee from Brazil, nearly six times the amount in 2022.

According to Vicofa, in the previous crop year, Vietnam imported a total of approximately 102,100 tons of coffee from various countries worldwide, valued at nearly 300 million USD, an increase of over 14% in volume and 9% in value compared to the 2021/22 crop year.

Thus, domestic coffee prices on 06/18/2024, are trading around the VND 120,000 - 121,200/kg range.

$ 1 = VND 25.221 - Source: Vietcombank