Domestic coffee prices continue to increase sharply
In the domestic market, coffee prices today increased by VND1,500/kg in most regions. The highest price recorded in Dak Lak, Gia Lai and Dak Nong was 130,500 VND/kg.
Compared to yesterday, domestic coffee prices continued to increase due to purchasing demand from export enterprises and domestic roasters. With limited supply, many experts believe that domestic coffee prices may continue to stay high in the coming time.
World coffee prices: Robusta slightly increased, Arabica still decreased
After a series of sharp declines, Robusta coffee prices on the London exchange began to recover slightly as buying pressure gradually returned to the market. However, the increase is insignificant, showing the cautious sentiment of investors in the face of supply pressure from the new harvest in major producing countries.
Meanwhile, Arabica coffee prices continue to be under selling pressure, causing futures contracts to continue to decrease. The main reason comes from the recovery of inventory supply, along with concerns about stagnant consumption demand in the context of the global economy showing no signs of improvement.
Market analysis
The coffee market continues to have differentiation between two major exchanges. While domestic coffee prices maintained their upward momentum thanks to strong buying demand from export enterprises and roasters, world prices had mixed developments.
Robusta: Prices show signs of a slight recovery but are still under pressure from abundant supply and profit-taking by investors.
Arabica: Although rainfall in Brazil is lower than the historical average, Arabica prices are still weak due to selling pressure from investment funds and improved inventory supply in the market.
According to experts, the current coffee market is reflecting fluctuations in both supply and demand. Factors such as harvest output in Vietnam, weather conditions in Brazil, as well as monetary policies of central banks will continue to affect coffee prices in the coming time.
Coffee price forecast
The domestic market may continue to increase if supply is still unstable and export demand remains high. Robusta prices are likely to maintain their recovery momentum, but the increase may be limited if the market does not have additional supporting factors.
Arabica may continue to be under downward pressure, but if reports of crop yields in Brazil are unfavorable, prices may stagnate or recover slightly.
In addition, monetary policy and fluctuations in the USD exchange rate will also be factors that directly affect coffee prices in the coming period.
