Domestic coffee prices
The domestic coffee market this morning, April 23, recorded a joyful atmosphere when purchasing prices simultaneously broke through after a slight adjustment session before that.
According to surveys in key growing areas of the Central Highlands, the price of raw coffee beans has regained its upward momentum of 1,000 VND/kg, bringing the average price level of the whole region to the threshold of 87,900 VND/kg. In which, Dak Nong province (old) recorded the highest price in the region at 88,000 VND/kg after increasing by another 900 VND.
Dak Lak and Gia Lai localities both had an increase of 1,000 VND and are currently trading stably at 87,800 VND/kg. In Lam Dong province, coffee prices also recovered strongly to 87,300 VND/kg. This increase is further strengthened by the USD/VND exchange rate slightly increasing to 26,100, creating favorable conditions for export activities.
World coffee prices
On world exchanges, coffee prices have just experienced a burst session in terms of points with brilliant green color on both futures exchanges.
Specifically, Arabica prices on the New York exchange for May delivery accelerated strongly by another 13.40 cents, equivalent to an increase of 4.64%, officially exceeding the important psychological threshold to close at 302.40 cents/lb. Following that trend, the London exchange also recorded Robusta prices for May delivery increasing by another 82 USD, equivalent to 2.37%, anchored at 3,539 USD/ton. Arabica's successful conquest of the 300 cent mark is a signal that the market heat is at its peak.
The direct cause of this breakthrough is concerns that the prolonged closure of the Strait of Hormuz will directly paralyze the vital maritime transport chain.
This not only sharpened insurance and fuel costs but also disrupted supply from major producing countries to international roasters. In addition, a climate report from Brazil showed that the key coffee growing region of Minas Gerais last week only received rainfall equal to 20% of the historical average. Prolonged drought is directly threatening the actual yield of the world's number one exporting country, thereby promoting a wave of massive buying by speculative funds.
In the current context, domestic coffee prices have a complete opportunity to re-establish the 9,000 VND/kg mark if the tense situation in the Middle East shows no signs of cooling down.
Besides coffee, the fact that cacao prices are also soaring by nearly 4% shows that cash flow is strongly focused on agricultural products affected by global logistics.
