Today marks the second consecutive day of significant declines in global coffee prices. Experts attribute the drop to the depreciation of the Brazilian real, increased inventory on exchanges, heavy rainfall in Vietnam's Central Highlands, and a smooth harvest season in Brazil.
Thus, coffee prices on 07/25/2024 globally have continued to decrease sharply compared to yesterday.
In Vietnam, domestic coffee prices have dropped by VND 2,000 compared to yesterday.
Specifically, in Lam Dong province, the three districts of Di Linh, Bao Loc, and Lam Ha are trading at VND 124,000/kg.
In Dak Lak, the district of Cu M'gar is buying at VND 124,500/kg, while Ea H'leo and Buon Ho are trading at VND 124,400/kg.
In Dak Nong province, traders in Gia Nghia and Dak R'lap are trading at VND 124,700 and VND 124,600/kg, respectively.
In Gia Lai province, Chu Prong is trading at VND 124,500/kg, while Pleiku and La Grai are maintaining a price of VND 124,400/kg.
In Kon Tum, the buying price today is VND 124,500/kg.
Today, domestic coffee prices have continued to decline sharply, dropping an additional VND 2,000 to a level of VND 124,000/kg.
In early July 2024, Robusta coffee prices in the domestic market generally trended upward. This price increase was driven by a shortage of local supply and high international Robusta prices.
According to the Ministry of Agriculture and Rural Development, Vietnam's coffee production for the 2023/2024 season is expected to decrease by 20% compared to the 2022/2023 season, falling to 1.47 million tons— the lowest in four years. The forecast for the 2024/2025 season suggests further reductions due to adverse weather conditions and pest issues that are shrinking the cultivated area.
Data from the General Department of Customs shows that in June 2024, Vietnam's coffee exports reached 70.2 thousand tons, worth $ 322.41 million, representing a decrease of 11.5% in volume and 5.0% in value compared to May 2024. Compared to June 2023, this represents a 50.4% drop in volume and a 15.1% drop in value.
In the first half of 2024, Vietnam exported 893.82 thousand tons of coffee, valued at nearly $ 3.2 billion, which is an 11.4% decrease in volume but a 33.2% increase in value compared to the same period last year.
It is forecasted that coffee exports will continue to decline in the third quarter due to dwindling supply. Supply is expected to increase again in October when the 2024/2025 harvest season begins.
Thus, on 07/25/2024, domestic coffee prices are trading around VND 124,000 - 124,700/kg.
$ 1 = VND 25.148 - Source: Vietcombank.
