Coffee price today September 21, 2024: Sharp decrease of up to 1,500 VND
Coffee prices today, September 21, range from 121,700 - 122,100 VND/kg, all down sharply by 1,500 VND/kg.
Specifically, in Di Linh, Lam Ha, Bao Loc districts (Lam Dong), today's coffee price is purchased at 121,700 VND/kg.
In Cu M'gar district (Dak Lak), the coffee price today is at 122,100 VND/kg. In Ea H'leo district (Dak Lak), Buon Ho district (Dak Lak), the coffee price today is purchased at the same level of 122,000 VND/kg.
Similarly in Dak Nong province, today's coffee purchase price is at 122,100 VND/kg in Gia Nghia and 122,000 VND/kg in Dak R'lap.
In Gia Lai province, coffee price today is at 122,000 VND/kg (Chu Prong), in Pleiku and La Grai the price is 121,900 VND/kg.
Today's coffee price in Kon Tum province is purchased at 122,000 VND/kg.
Economist Nguyen Quang Binh said that the drop in coffee prices was due to speculators selling after they bought large quantities of previous contracts. This drop was also driven by the US Federal Reserve’s decision to cut interest rates, along with the fact that coffee is not considered a safe investment channel like gold.
The gold market is witnessing a strong increase in prices, attracting investment flows from coffee to the precious metal. At the same time, favorable weather conditions in Brazil also contributed to the impact on coffee prices. Storms delayed the coffee harvest, while rainfall in Brazil has been below average since the beginning of the dry season.
Rabobank predicts that the global coffee market will face a supply shortage, with shipping delays and container shortages. New EU regulations against deforestation are also coming into effect, which are expected to impact coffee prices.
At the end of the most recent trading session, the price of Robusta coffee in London for November 2024 delivery decreased by 166 USD/ton, at 5,082 USD/ton, and for January 2025 delivery decreased by 165 USD/ton, at 4,824 USD/ton.
Arabica coffee prices for December 2024 delivery decreased by 10.15 cents/lb to 251.50 cents/lb, and for March 2025 delivery decreased by 10.25 cents/lb to 249.45 cents/lb.
Storm No. 4 has brought heavy rain to the Central Highlands region, raising concerns about its negative impact on the upcoming coffee crop. According to the Vietnam Coffee and Cocoa Association (VICOFA), coffee prices are currently stable due to depleted supplies and low trading.
Vietnam's main coffee harvest season takes place in November and December, making coffee available on the market scarce in September and October.
Climate change has affected coffee production in both the two largest producing countries, Brazil and Vietnam, leading to fluctuations in global coffee prices. At the same time, speculative activities on the London exchange have also contributed to the volatility of coffee prices.
