Source: International Newspaper
Indonesian coffee currently has a difference of 500 - 600 USD/ton compared to the London futures price, while Vietnamese spot robusta has increased to 100 - 120 USD/ton, doubling compared to last week. In fact, the supply is not abundant, so local traders have to raise prices to buy goods, according to observers.
World coffee prices increase and decrease in contrast on international and domestic exchanges. Robusta coffee prices on the London exchange increased and recovered, while domestic transactions decreased. Arabica coffee prices turned down slightly, after many consecutive sessions of increases.
This is the first increasing session of the London exchange since the beginning of the new year 2024.
The coffee market fluctuates with the commodity market due to psychological uncertainty. Meanwhile, supply concerns in the Asian region support the upward price trend, while the focus of the world coffee market at this time still revolves around weather conditions in Brazil and the development of the crop. new season 2024/2025.
Weather information in Brazil has had rain, in addition to the report of increased global coffee exports in November from the International Coffee Organization (ICO).
Data reported by the ICE Report Center shows that inventories on both exchanges have not recorded any significant improvement, arabica still stands at the lowest level in 24 years, robusta has no additions from European supplies. ASIAN.
Domestic coffee price today 5/1 further discount of 500 VND/kg at some key purchasing localities. (Source: YouTube) |
At the end of the trading session on January 4, the price of robusta coffee on ICE Futures Europe London increased, the March 1 delivery term increased by 3 USD, trading at 2024 USD/ton. Delivery term in May 31 increased by 2.786 USD to trade at 5 USD/ton. Low trading volume.
Arabica coffee prices on ICE Futures US New York floor decreased slightly, delivery period March 3 decreased by 2024 Cent, trading at 0,7 Cent/lb. Meanwhile, the May 185,55 delivery price decreased by 5 Cent, trading at 2024 Cent/lb. Low average trading volume.
Domestic coffee price today 5/1 further discount of 500 VND/kg at some key purchasing localities.
Unit: VND/kg. (Source: Giacaphe.com) |
Global commodity markets continue to fluctuate with uncertainty that the US Federal Reserve (Fed) will begin a cycle of cutting interest rates after the US employment report did not meet expectations and crude oil prices had a negative impact. The trend increases with tensions related to the Hamas-Israel war.
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In the last days of 2023, coffee prices have returned to the old record level of 70.000 VND/kg. Prices increase even during harvest time - something rarely seen so far. For the whole year 2023, coffee prices will increase by up to 70%.
The heat continues to spread into 2024 when prices remain around 68.000 - 69.000 VND/kg. According to export businesses, people hoarding goods even during the harvest season contributes to scarce supply, pushing up domestic prices. Many export enterprises cannot purchase goods to serve future delivery contracts.
Although Vietnam has entered the full harvest of coffee in the 2023/2024 crop year, supply scarcity still exists, while demand is quite large. Information estimated that there is a shortage of about 1,5 - 2,5 million bags of coffee according to the contract and needs to be met from the current coffee harvest that appeared late last year, causing coffee prices to skyrocket.
The heat continues to spread into 2024 as prices remain high. According to export businesses, people hoarding goods even during the harvest season makes supply scarce. Many export enterprises cannot buy goods to serve future contracts.
Report of the Vietnam Coffee and Cocoa Association (Vicofa), it is expected that coffee output in the 2023 - 2024 crop year (from October 10 to September 2023) will decrease by 9% compared to the previous crop year to about 2024 million tons due to the impact of climate change, increased intercropping area, farmers investing in crops with high economic efficiency such as durian and fruit trees. If in the 10 - 1,6 crop year, the inventory transferred from the previous crop was about 2022 tons, then this year, this number is less than half, about 2023 tons.
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