Coffee prices today, August 24, 2024: Slightly decreased by 1,000 VND/kg

Specifically, in Di Linh, Lam Ha, and Bao Loc districts (Lam Dong province), the price of coffee today is being purchased at 117,500 VND/kg.

In Cu M'gar district (Dak Lak), the price of coffee today is 118,300 VND/kg. In Ea H'leo district (Dak Lak) and Buon Ho (Dak Lak), the price of coffee today is the same at 118,200 VND/kg.

Similarly, in Dak Nong province, today's coffee prices are being purchased at 118,300 VND/kg in Gia Nghia and 118,200 VND/kg in Dak R'lap.

In Gia Lai province, today's coffee price is 118,300 VND/kg (Chu Prong), while in Pleiku and La Grai it is 118,200 VND/kg.

Meanwhile, the price of coffee today in Kon Tum province is being purchased at 118,300 VND/kg.

The domestic coffee market reversed course and fell slightly by 1,000 VND compared to the same time yesterday.

While the London exchange is about to reach a historic high of $5,000 per ton, domestic prices in Vietnam have already surpassed this figure. A shortage of supply is the main reason for this price increase.

Vietnamese robusta coffee currently commands the highest price in the world; however, there is no product available for sale until the new harvest season begins in a month's time.

Mr. Nguyen Nam Hai, Chairman of the Vietnam Coffee and Cocoa Association (VICOFA), noted that many other factors have also contributed to the surge in coffee prices, including global military tensions, climate change, and volatility in financial markets such as the recent rise in gold prices.

According to current trends, coffee farmers in Vietnam can expect to sell their produce at high prices in the upcoming harvest season. Forecasts for Vietnam's robusta coffee production in the 2024/2025 crop year suggest it may fall to 24 million bags, the lowest level in 13 years, due to drought.

At the close of the most recent trading session, Robusta coffee prices in London for September 2024 delivery rose by $78/ton to $4,981/ton, and for November 2024 delivery rose by $44/ton to $4,618/ton.

Arabica coffee prices for September 2024 delivery increased by 1.40 cents/lb to 244.30 cents/lb, while prices for December 2024 delivery increased by 1.30 cents/lb to 242.50 cents/lb.

Mr. Trinh Duc Minh, Chairman of the Buon Ma Thuot Coffee Association, predicts that coffee production could decrease by another 15% compared to the previous crop year.

The reasons for this decline include a reduction in coffee growing area and severe drought during the past dry season, which prevented the coffee cherries from developing to their normal size.

Mr. Le Thanh Son, Business Director of Simexco DakLak, said that coffee prices will only adjust slightly and remain high, above 100,000 VND/kg, even if supply increases during the harvest season due to the impact of extreme weather.