Domestic coffee prices increase sharply
The domestic coffee market continued to flourish as prices increased by VND2,800 - 3,000/kg compared to yesterday. Since the beginning of the week, domestic coffee prices have increased by a total of VND 3,500 - VND 3,800/kg, recording the highest level in the past two weeks.
Coffee prices today in Dak Lak and Dak Nong reached VND133,000/kg, an increase of VND3,000 compared to the previous session. In Gia Lai, coffee prices are at 132,800 VND/kg, up 2,800 VND/kg. Lam Dong continues to record the lowest price but also increased to 131,000 VND/kg.
World coffee prices increase sharply
After many quiet sessions, coffee prices on the two derivatives exchanges had an explosive trading session. Robusta on the London exchange increased by nearly 3%, while Arabica on the New York exchange jumped more than 13 cents/pound.
Reasons for the sharp increase in coffee prices
The USD index decreased slightly in the recent trading session, causing capital to return to the commodity market, especially coffee.
Them added that ICE-managed Arabica coffee inventories remain at their lowest level in nearly 10 months. Robusta also saw a sharp decline in supply, creating upward pressure on prices.
After many sessions of adjustment, speculators have begun to return to the coffee market, pushing prices up sharply.
Coffee price forecast in the coming time
According to a Reuters survey, the increase in coffee prices may continue in the short term, especially when supply has not shown any signs of improvement. Robusta prices could hit $5,500/ton, while Arabica could surpass 400 cents/pound if the trend continues.
However, coffee prices may stagnate or decrease slightly if supply improves and exporters boost sales.
