Domestic coffee prices
On the morning of May 18, coffee prices in the domestic market continued to plummet for the second consecutive session. The current common price ranges from 124,500 - 125,200 VND/kg, down 1,000 - 1,400 VND/kg compared to yesterday.
Dak Lak and Gia Lai are both trading at 125,000 VND/kg, down 1,200 VND and 1,000 VND/kg respectively.
Lam Dong is the locality that recorded the lowest price at 124,500 VND/kg, down sharply by 1,400 VND.
Dak Nong had the highest price, reaching 125,200 VND/kg, down 1,000 VND.
Compared to the beginning of the week, domestic coffee prices have now decreased by a total of about 4,000 VND/kg, losing the short recovery momentum since mid-month.
World coffee prices
The world coffee market extends its downward trend:
On the London Stock Exchange, Robusta's July term decreased by 106 USD, closing at 4,865 USD/ton; September term decreased by 100 USD, to 4,860 USD/ton.
On the New York Stock Exchange, Arabica's July term decreased by 9.35 cents to 365.65 cents/lb; long-term terms also decreased by over 7 cents/lb.
Compared to the beginning of the week, Robusta prices have lost about 391 USD/ton, while Arabica has decreased by more than 21 cents/lb, marking the strongest week of decline since the beginning of May.
Assessment
Coffee prices plummeted due to profit-taking pressure from hedge funds, along with concerns about slowing global consumption. The increase in the USD has caused increased import costs, negatively affecting the buying demand of major consumer countries.
The domestic market immediately reacted to negative signals from the world. Many dealers said that purchasing power is weak, while the remaining source of goods is not much because most of them have been sold from previous high prices.
