Coffee price today November 6, 2024: Slight increase of 500 VND/kg
Today's domestic coffee price, November 6, is at 105,900 - 106,400 VND/kg, a slight increase of 400 to 500 VND/kg compared to yesterday. World coffee prices improved thanks to the stronger exchange rate of the Brazilian Real.
Domestic coffee prices today
Specifically, in Di Linh, Lam Ha, Bao Loc districts (Lam Dong), today's coffee price is purchased at 105,900 VND/kg.
In Cu M'gar district (Dak Lak), the coffee price today is at 106,400 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 106,300 VND/kg.
Similarly in Dak Nong province, today's coffee purchase price is at 106,400 VND/kg in Gia Nghia and 106,300 VND/kg in Dak R'lap.
In Gia Lai province, coffee price today is at 106,400 VND/kg (Chu Prong), in Pleiku and La Grai the price is 106,300 VND/kg.
Today's coffee price in Kon Tum province is purchased at 106,400 VND/kg.
Vietnam currently ranks second in coffee production after Brazil and is in the top 5 agricultural product groups with the highest export turnover of the year. In 2023, Vietnam exported about 1.61 million tons of coffee, earning 4.18 billion USD. In the first half of this year, coffee exports reached 1 million tons, earning nearly 2.4 billion USD. The Central Highlands, especially Gia Lai province, is one of the key coffee production localities in the country with outstanding area, output and value.
However, the coffee market is highly volatile and coffee prices change frequently. This has caused many challenges for farmers, buyers, processors, exporters, importers and retailers. Mr. Tran Van Binh, Director of Saigon Invest Commodity Trading Joint Stock Company, said that the establishment of a coffee exchange in Gia Lai province will bring many benefits. The exchange will be a place to trade coffee futures contracts, helping supply and demand meet and form prices. Coffee prices on the exchange are often considered the reference price for the market.
Coffee producers, exporters and importers can use the exchange to protect themselves against price fluctuations by buying or selling futures contracts to lock in profits or minimize the risk of losses. All transactions on the exchange are recorded and made public, increasing market transparency and reducing information asymmetry. The exchange also creates a large market with many participants, ensuring liquidity and making it easy for investors to buy and sell futures contracts.
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 51 USD/ton, at 4,369 USD/ton, and for January 2025 delivery increased by 45 USD/ton, at 4,294 USD/ton.
Arabica coffee prices for December 2024 delivery increased by 3.85 cents/lb to 249.80 cents/lb, and for March 2025 delivery increased by 3.80 cents/lb to 248.75 cents/lb.
According to the Vietnam Commodity Exchange (MXV), the prices of two coffee commodities increased in the first trading session of the week. Specifically, Arabica coffee prices increased by more than 1% after two consecutive sessions of decline, while Robusta coffee prices also recovered nearly 1% from the lowest level in nearly three months.
Coffee gains were supported by a stronger Brazilian Real and a weaker Dollar Index, which pulled the USD/BRL exchange rate down 1.3% from its highest level in nearly three years. The narrowing exchange rate differential could lead to lower coffee exports from Brazil due to the smaller currency differential advantage, fueling speculators’ expectations of higher prices.
According to Somar Meteorologia, rainfall in Minas Gerais state, Brazil’s largest Arabica coffee growing region, was just 27.4 mm last week, 64% of the historical average. Coffee production in areas affected by prolonged dry weather could fall 20-30% below potential, despite recent rains boosting the main crop’s flowering, analysts from the Procafe Foundation said.