Rice and coffee prices continue to increase; Gold trading is expected to be difficult next week

Coffee increased by 1,900 VND/kg

Coffee pricesDomestic coffee prices today (July 9) in the Central Highlands provinces increased from 1,800 - 1,900 VND/kg, the highest coffee price was at 66,800 VND/kg.

Specifically, the price of green coffee beans (coffee beans, fresh coffee beans) in Lam Dong province increased by 1,800 VND/kg. In districts such as Bao Loc, Di Linh, Lam Ha, coffee is purchased at a price of 66,200 - 66,300 VND/kg.

Coffee prices in Gia Lai and Kon Tum provinces stood at VND66,400/kg, an increase of VND1,800/kg.

In Dak Nong province, coffee increased by 1,800 VND/kg, being purchased at the highest price of 66,800 VND/kg.

In particular, today's coffee price in Dak Lak province increased by 1,900 VND/kg, in Cu M'gar district, the coffee price is currently at 66,600 VND/kg. In Ea H'leo district, Buon Ho town, the price is also 66,700 VND/kg.

Regarding world coffee prices, coffee prices on both exchanges returned to an upward trend. Robusta coffee prices increased "hugely" after the inventory report managed by ICE - London decreased to 59,880 tons, reported yesterday, July 7.

Specifically, at the end of the most recent trading session, Robusta coffee prices on the London floor reversed and increased sharply. September spot futures increased by 111 USD, to 2,621 USD/ton and November futures increased by 69 USD, to 2,475 USD/ton, very strong increases. Trading volume was very high above average.

Similarly, Arabica coffee prices on the New York floor continued to recover. September spot futures increased by 0.45 cents to 160.90 cents/lb and December futures increased by 0.40 cents to 160.05 cents/lb, both slight increases. Trading volume was average.

According to experts, the July term has just begun, which is an opportunity to push prices up due to concerns about supply shortages.

The US Department of Agriculture (USDA) forecasts that Vietnam's coffee output this year will decrease by more than 7%, raising concerns that global supply will tighten amid increasing demand for Robusta coffee.

According to the General Statistics Office, in the first 6 months of 2023, Vietnam exported 1.02 million tons of coffee with a value of 2.405 billion USD, down 2.2% in volume but up 3.0% in value over the same period last year.

This is the highest coffee export turnover in the first 6 months of the year in Vietnam in the past 10 years. With the results achieved, it is likely that 2023 will be the next year that Vietnam reaches the 4 billion USD coffee export turnover (after recording a record 4.06 billion USD in 2022).

Rice price increased by 5 USD/ton after 1 week

Rice priceOn July 9, in the Mekong Delta region, there was no change compared to yesterday. At An Giang warehouse, IR 504 rice price is being purchased by traders at 6,400 - 6,600 VND/kg; Dai Thom 8 rice is at 6,900 - 7,100 VND/kg; OM 5451 rice fluctuates at 6,400 - 6,600 VND/kg; OM 18 rice is at 6,600 - 6,800 VND/kg; Dai Thom 8 rice is at 6,900 - 7,000 VND/kg; Nang Hoa 9 is at 6,600 - 6,800 VND/kg; Nhat rice is also stable at 7,800 - 8,000 VND/kg; Nang Nhen rice (dry) is at 13,000 VND/kg.

Regarding sticky rice, AG (fresh) sticky rice is currently purchased by traders at the field at a stable price of 5,700 - 5,900 VND/kg; Long An (fresh) sticky rice fluctuates between 6,300 - 6,400 VND/kg; AG (dry) sticky rice is at 7,400 - 7,600 VND/kg; Long An (dry) sticky rice is priced at 7,700 - 7,900 VND/kg.

Similarly, for rice, the price of raw rice and finished products remains stable today. Specifically, the price of IR 504 raw rice is being purchased at 10,100 - 10,150 VND/kg. Meanwhile, the price of finished rice is at 11,500 - 11,600 VND/kg.

Regarding by-products, the prices of broken rice and bran were adjusted in opposite directions. Accordingly, the price of IR 504 broken rice increased by VND100/kg to VND9,700 - VND9,800/kg; meanwhile, dry bran was stable at VND7,600 - VND7,700/kg.

Gold price forecast

Edward Moya, senior market analyst at OANDA, commented that the long-term outlook forYellowis rising due to a weakening labor market. However, more interest rate hikes may come in the future, making it difficult for gold. Trading in gold may be difficult next week.

The decline in gold prices reflects market expectations that the Fed will raise interest rates at its July 2023 meeting, said David Meger, director of metals trading at futures brokerage High Ridge Futures.

Some forecasts say that if the $1,900/ounce mark is lost, gold could fall to $1,860/ounce./.