Domestic coffee prices
This morning, domestic coffee prices decreased by 300 VND/kg in most localities. According to records:
The average price of green coffee beans in Dak Lak and Gia Lai is 128,000 VND/kg.
Coffee prices in Lam Dong are 127,700 VND/kg.
The coffee price in Dak Nong is 128,200 VND/kg.
The average price of the whole market is currently at 128,000 VND/kg, down 600 VND/kg after only two sessions, and down a total of 2,300 VND/kg compared to the peak set on May 4 (130,300 VND/kg).
World coffee prices
On the London Stock Exchange, Robusta prices were adjusted down:
7: 5,239 USD/ton (-17 USD)
September term: 5,187 USD/ton (-14 USD)
On the New York Stock Exchange, Arabica prices fell sharply:
Monthly term: 384.10 cents/lb (-5.75 cents)
Monthly term: 378.70 cents/lb (-5.05 cents)
Compared to the beginning of the week, both exchanges have lost all of their previous gains. Arabica prices alone lost nearly 11 cents compared to the peak of 395.90 cents/lb in the first session of the week.
Market analysis
The decline in coffee prices today is said to come from technical profit-taking activities after many consecutive increases. Meanwhile, the world market continues to be pressured by improved supply prospects in Brazil and Vietnam.
The Somar Meteorological Agency (Brazil) recorded above-average rainfall in Minas Gerais, helping to maintain soil moisture and supporting growth for Arabica coffee. In Vietnam, favorable weather and stable delivery progress also contribute to reducing concerns about Robusta shortages.
Arabica inventories on the ICE exchange this week have increased to their highest level in more than two months, showing that supply signals have improved somewhat. In contrast, Robusta inventories remained low, but not enough to keep prices up.
Traders predict that if there are no weather breaks, the coffee market may adjust further in the next few sessions before establishing a new price level.
