Coffee prices on 08/07/2024: Sharp increase again

Coffee prices on August 7 globally

On August 7, 2024, coffee prices experienced a significant rise on both the London and New York exchanges.

On the London exchange, the price of Robusta for the September 2024 contract increased by $ 208, reaching $ 4,383/ton. The November 2024 contract saw a substantial rise of $ 161, bringing it to $ 4,190/ton.

On the New York exchange, the price of Arabica for the September 2024 contract surged by 10.25 cents, hitting 235.95 cents/lb. The December 2024 contract also rose sharply, increasing by 8.65 cents to reach 232.95 cents/lb.

Global coffee prices today have surged to their highest level in two weeks. This increase is due to Rural Clima's forecast that temperatures in southern Brazil could drop close to freezing next week.

According to Bloomberg, Arabica prices have rebounded to the strongest increase in nearly a month of continuous declines, thanks to the forecast of colder weather in Brazil, the leading coffee producer, which has prompted roasters to buy in.

The September contract rose by up to 5.8% in New York, recovering from the sell-off on Monday, which had further pressured the downward trend since mid-July. Subsequent contracts have moderated their gains but still widened the spread compared to the December contract.

A broker noted that roasters are appearing in the market as they take advantage of lower prices to settle their purchases.

The colder weather in Brazil has caused investor panic and forced some to close short positions, despite meteorologists dismissing the risk of frost damaging coffee crops.

Thus, global coffee prices on 08/07/2024, have sharply increased compared to the previous day.

Coffee prices on August 7 domestically

In the domestic market, coffee prices have dropped by VND 1,200 compared to yesterday.

Specifically, in Lam Dong Province, the districts of Di Linh, Bao Loc, and Lam Ha are trading at VND 122,000/kg.

In Dak Lak, the district of Cu M'gar is buying at VND 122,500/kg, while Ea H'leo and Buon Ho are trading at VND 122,400/kg.

In Dak Nong Province, traders in Gia Nghia and Dak R'lap are buying at VND 122,500 and VND 122,400/kg, respectively.

In Gia Lai Province, the district of Chu Prong is trading at VND 122,500/kg, while Pleiku and La Grai are maintaining VND 122,400/kg.

In Kon Tum, the buying price is VND 122,400/kg today.

Today domestic coffee prices have surged significantly, helping the commodity recover to around VND 122,000/kg.

According to data from the General Department of Customs, the EU is the largest market for Vietnamese coffee in the first half of the year, accounting for nearly 40% of export market share with a volume of 353,468 tons and a value of over $ 1.2 billion. Although the export volume decreased by 8.5% compared to the same period last year, the value increased by 40.7%.

According to data from Eurostat, by the end of May, the EU spent EUR 5.35 billion to import 1.3 million tons of coffee (HS 0901 and 2101) from around the world, marking a 4.8% increase in volume and an 8.7% increase in value compared to the previous year.

The main coffee suppliers to the EU include Brazil, Vietnam, Honduras, Uganda, Colombia, and India...

Brazil leads in coffee imports with 489,115 tons, a 28.6% increase from the previous year. However, the average export price of Brazilian coffee to the EU decreased by 7.8% in the first five months of the year, falling to EUR 3,509/ton.

Vietnam remains in the second position with a volume of 340,598 tons and a value of over EUR 1 billion. Compared to the same period last year, the export volume only increased by 1.5%, but the value surged by 42.4%, thanks to a 40.3% increase in the average export price of Vietnamese coffee to the EU, reaching EUR 3,136/ton.

As a result, Vietnam's share of the total value of coffee imports to the EU has increased from 15.2% to 20%.

Thus, domestic coffee prices on 08/07/2024, are trading around VND  122,000 - 122,500/kg.

$ 1 = VND 24.965 - Source: Vietcombank.