Domestic coffee prices
Recorded at 11:00, domestic coffee prices plummeted for the second consecutive session, down from 1,700 - 2,000 VND/kg compared to yesterday. In Dak Lak, Gia Lai and Dak Nong, the current price fluctuates around 126,000 VND/kg, down from 1,700 - 1,800 VND. Lam Dong recorded the lowest price of 125,500 VND/kg, down 2,000 VND.
Compared to last weekend (May 10), coffee prices have decreased by a total of about 3,000 - 3,200 VND/kg. This is the strongest adjustment in a month.
World coffee prices
On the London Stock Exchange, Robusta coffee futures for July fell sharply by 174 USD/ton, closing at 5,052 USD/ton. Long terms also recorded a decrease of more than 160 USD/ton. Compared to the session on May 13, robusta prices have decreased by a total of nearly 200 USD/ton, erasing the increase since the beginning of the month.
In the same direction, the New York exchange also recorded a very sharp decrease with the arabica price for July futures losing 14.80 cents, to 372.95 cents/lb. Other terms also fell more than 13 cents/lb. In the last 2 sessions, arabica has lost a total of nearly 26 cents/lb, equivalent to a decrease of more than 6.5%.
Assessment
The sharp price decline in the last 2 sessions has been explained by many resonating factors. First of all, there is profit-taking pressure after a period of rapid price increases last week. In addition, the stronger US dollar has put pressure on commodity prices, including coffee, to adjust.
In the term market, sell-off activities increased in the context of forecasts of improved supply from large producing regions. In Brazil, favorable weather continues to strengthen expectations for the upcoming Robusta and arabica harvests.
New York's arabica coffee warehouse is also at a 3-month high, increasing pressure on futures prices. Meanwhile, international traders assess that if the sell-off trend continues this week, coffee prices may be adjusted further before establishing a new support zone.
