Domestic coffee prices continue to increase sharply
The domestic coffee market continues to record an increase of 2,000 - 2,700 VND/kg. This is the third consecutive session of price increases, bringing the price level to the highest level since the beginning of the week.
Dak Lak, Dak Nong: 135,000 VND/kg, increased by 2,000 VND.
Gia Lai: 134,800 VND/kg, up 2,000 VND.
Lam Dong: 133,700 VND/kg, up 2,700 VND.
Compared to the beginning of the week, domestic coffee prices have increased by more than 6,000 VND/kg, reflecting the upward trend of the world market.
On international exchanges, coffee prices increased sharply in the most recent session:
Robusta London:
The May contract increased by 159 USD/ton, to 5,645 USD/ton.
The July contract increased by 155 USD/ton, to 5,599 USD/ton.
Arabica New York:
The May contract increased by 11.75 cents/lb to 398.40 cents/lb.
July's contract increased by 9.50 cents/lb to 387.70 cents/lb.
This is the strongest increase of the week, reflecting increased buying pressure and positive sentiment from the market.
Coffee market assessment
Coffee prices increased sharply thanks to many supporting factors. First of all, coffee inventories on ICE exchanges have fallen sharply, with Arabica inventories hitting a 9-month low, while Robusta's has also continued to decline. This raises concerns about increased supply.
In addition, the supply situation from the two major producing countries, Brazil and Vietnam, also affects prices. Brazilian farmers limit sales due to the devaluation of the Real, while in Vietnam, coffee is entering the final stage of the harvest season, causing supply to slow down.
The market is also supported by buying moves from investment funds, as many investors believe that coffee prices may continue to remain high in the coming time. In particular, dry weather in Brazil is causing concerns about the upcoming crop, further creating upward pressure on prices.
Coffee price forecast
With the current developments, coffee prices may continue to increase in the short term. However, the market also faces the risk of adjustment if profit-taking forces appear. Experts predict Robusta could approach the $5,700/ton mark this week, while Arabica is also likely to surpass the 400-cent/lb threshold if buying pressure continues.
