Domestic coffee prices: All increased
On October 25, coffee prices in key Central Highlands regions increased by an average of VND800/kg, bringing the average price in the whole region to VND116,300/kg. This is a positive signal for the market at the end of the week.
Specifically, in Dak Lak and Dak Nong (old), prices both increased by 900 VND/kg, reaching the highest level of 116,500 VND/kg. In Gia Lai, the price increased by 800 VND/kg, to 116,000 VND/kg. Lam Dong has an increase of 700 VND/kg, reaching 115,200 VND/kg.
World coffee prices: Each type goes in a different direction
The international coffee market ended the week with opposite developments.
Robusta coffee prices (the main coffee of Vietnam) on the London exchange increased slightly, by 17 USD/ton, closing at 4,571 USD/ton.
In contrast, Arabica coffee (bracial coffee) on the New York exchange decreased slightly by 1.70 US cents/lb, closing at 403.00 US cents/lb. This reversal shows that the market is struggling and there is no consensus on the direction.
Assessment and forecast
Domestic coffee prices increased following Robusta's momentum. The reason is that the amount of Robusta coffee in warehouses around the world is still very low.
According to Barchart, although Vietnam (the largest Robusta growing country) is expected to have good rain and a bumper crop, the worry of shortage of goods at the moment is still greater, causing prices to increase. In contrast, Arabica prices fell as investors sold them after prices increased too much and information about the weather in Brazil improved.
Next week, prices will continue to fluctuate strongly. The market is still having to balance between the lack of inventory (Helping prices increase) and news about the new crop about to begin (pricing down).
