Domestic coffee prices slightly decreased
This morning, coffee prices in the Central Highlands provinces (after the merger) decreased by 400 - 500 VND/kg compared to yesterday. In Dak Lak, the price ranges around 95,100 - 95,200 VND/kg. Lam Dong recorded the lowest level of VND 94,800/kg. Gia Lai costs about 95,000 VND/kg.
Compared to the price on July 1 (95,500 - 95,600 VND/kg), coffee today has decreased by nearly 500 VND/kg. Compared to a month ago (June 2), when the price was still over VND100,000/kg, the decrease was up to VND5,000 - 6,000/kg, reflecting a downward trend that lasted from June to early July.
World coffee prices fluctuate in different directions
On the London Stock Exchange, Robusta futures for September delivery increased by 40 USD, closing at 3,660 USD/ton, marking the second consecutive increase. Longer terms also increased by 19-36 USD/ton, bringing Robusta prices closer to the highest level of the week.
In contrast, Arabica prices on the New York exchange continued to fall sharply: the 09/25 term lost 8.15 cents, to 291.95 cents/lb; other terms decreased from 7.80 - 8.45 cents/lb, closing around 276 - 286 cents/lb.
Compared to the end of June, Arabica prices have lost more than 20 cents/lb, equivalent to a decrease of more than 6%, showing that selling pressure is still high.
Market trend assessment
Robusta prices are being supported by concerns about limited supply as new crop output in our country is expected to decrease sharply due to the impact of drought at the beginning of the year.
Meanwhile, Arabica is still under selling pressure from hedge funds ahead of the favorable Brazilian crop and expecting more abundant supply in the second half of the year.
The global coffee market is forecast to have many fluctuations in July, especially when the USDA and the International Coffee Organization (ICO) are preparing to release new reports on output and demand.
