Coffee prices on 10/27/2023: Continuing downward trend

Coffee prices on October 27 in the world

In the world, London and New York exchanges on October 27 are still maintaining their downward momentum.

On the New York exchange, the price of Arabica delivered in December 2023 decreased by 1.1 cents; down to 161.20 cents/lb. And the March 2024 delivery term decreased by 1.15 cents; at 160.90 cents/lb.

World coffee prices today had another sharp decline. The reason is that speculators liquidated and sold strongly. The pressure of increased risk aversion caused funds and speculation to accelerate the liquidation of net positions on both exchanges after 2 weeks of overbought increases. Favourable rain information appeared in farming areas in Brazil, causing Arabica prices to fall even deeper. 

Meanwhile, the London exchange inventory report recorded continuous additions that contributed to pushing Robusta prices down. As of Wednesday, October 25, Robusta reserves have increased by 580 tons, an increase of 1.60% compared to the previous day, up to 36,880 tons (about 614,667 bags, 60 kg/bags).  

Commenting on market developments, experts said that yesterday's London exchange price sometimes fell to the $ 2,400/ton mark but then went up. If this exchange's price loses the mark of $ 2,397/ton, the price will fall back to $ 2,350/ton. Meanwhile, the New York exchange needs to keep the price above 159 cents/lb if it does not want to fall to 145 cents/lb.

Thus, world coffee prices on 10/27/2023 continued to decrease compared to yesterday.

Coffee prices on 10/27 in the country

The domestic market on October 27 decreased sharply by VND 700/kg compared to yesterday.

Specifically, 3 districts of Di Linh, Bao Loc and Lam Ha of Lam Dong province are trading at the same level of VND 59,000/kg. 

In Dak Lak, Cu M'gar district today is purchasing at VND 59,800/kg. Ea H'leo and Buon Ho districts are trading for VND 59,700/kg.

In Dak Nong province, traders Gia Nghia and Dak R'lap are purchasing at VND 59,800 and VND 59,800/kg, respectively. 

In Gia Lai, Chu Prong district is trading at VND 59,700/kg, while Pleiku and La Grai are maintaining the same level. In Gia Lai province, the coffee price today is VND 59,700/kg (Chu Prong), and Pleiku and La Grai are trading at the same price of VND 59,600/kg.

The purchasing price in Kon Tum today is VND 59,700/kg.

Domestic coffee prices continue to decrease, thereby making it impossible to maintain the threshold of VND 60,000/kg.

Currently, key provinces are entering this year's harvest. Local authorities are encouraging organizations and individuals not to harvest green coffee, ensuring that the rate of ripe coffee when picked reaches over 85% (in the case of harvesting at the end of the season, the minimum rate of ripe coffee reaches 80%).

At the same time, there are strict measures to handle cases of harvesting, buying and selling unripe coffee; instructing people to prepare drying yards and dryers in case prolonged rain at harvest time affects the quality of this agricultural product.

Thus, the domestic coffee price on 10/27/2023 is trading around the threshold of VND 59,000 - 59,800/kg.

$ 1 = VND 24,360 - Source: Vietcombank