Coffee price today December 6, 2024: Strong increase again
Today's domestic coffee price on December 6 is at 113,000 - 114,200 VND/kg. It has increased sharply from 5,700 to 6,000 VND/kg. After 2 days of deep decline, speculators returned to buy strongly, helping coffee on both floors recover.
Domestic coffee prices today
Specifically, today's coffee price in Dak Lak increased by 6,000 VND/kg compared to yesterday, reaching 114,000 VND/kg.
Coffee prices today in Lam Dong also increased by 6,000 VND/kg compared to yesterday, reaching 113,000 VND/kg.
Similarly, today's coffee price in Gia Lai increased by 6,000 VND/kg compared to yesterday, reaching 114,000 VND/kg.
Coffee prices today in Dak Nong remain at their highest level, up 5,700 VND/kg compared to yesterday, reaching 114,200 VND/kg.
Since Donald Trump won the 2024 US presidential election, the financial market has seen a shift in cash flow from safe havens such as gold and precious metals to higher-yielding investment channels such as coffee and cocoa.
Along with concerns about supply shortages, expectations of continued increases in coffee prices have pushed speculators to aggressively increase their buying positions in the market.
According to MXV, speculation - a prominent feature of the coffee derivatives market - has played an important role in driving up coffee prices over the past month.
This price increase is not only due to speculative sentiment but also influenced by lingering concerns about supply shortages from early 2024.
However, Mr. Nguyen Ngoc Quynh, Deputy General Director of MXV, said that after a strong increase due to speculation, coffee prices may face a sharp downward adjustment when returning to the price level determined by the principle of supply and demand.
In particular, when Vietnam enters the phase of releasing new crop supplies to the market, domestic coffee prices are at risk of falling faster than world prices.
World coffee prices today
At the end of the most recent trading session, the price of Robusta coffee in London for November 2024 delivery increased by 73 USD/ton compared to yesterday, at 4,843 USD/ton, and for January 2025 delivery increased by 73 USD/ton compared to yesterday, at 4,824 USD/ton.
Arabica coffee prices for December 2024 delivery increased by 5.80 cents/lb compared to yesterday, at 309.50 cents/lb, and for March 2025 delivery increased by 5.45 cents/lb compared to yesterday, at 307.20 cents/lb.
After two days of sharp decline, the coffee market has witnessed a strong recovery thanks to active buying by speculators.
Faced with strong fluctuations in the coffee market over the past year, Mr. Nguyen Ngoc Quynh, Deputy General Director of MXV, recommended that businesses should take advantage of the derivatives market, specifically futures contracts, to hedge prices.
This form not only helps to minimize risks from unusual fluctuations but also ensures the supply of goods in real trading situations where there are problems, such as contract failure due to rapid price fluctuations.
When using derivative contracts with physical delivery, trading parties can be more confident in maintaining a stable supply for trading activities.
