Coffee price today December 2, 2024: Coffee price reaches highest level since 1977
Today, December 2, domestic coffee prices are at 130,700 - 131,500 VND/kg. Compared to the beginning of last week, coffee has increased by 12,500 - 13,000 VND/kg. World coffee prices have reached their highest level since 1977.
Domestic coffee prices today
Specifically, today's coffee price in Dak Lak increased by 12,500 VND/kg compared to the beginning of last week, reaching 131,000 VND/kg.
Coffee prices today in Lam Dong also increased by 12,500 VND/kg compared to the beginning of last week, reaching 130,700 VND/kg.
Similarly, today's coffee price in Gia Lai increased by 12,600 VND/kg compared to the beginning of last week, reaching 131,000 VND/kg.
Coffee prices today in Dak Nong have the highest price, increasing by 13,000 VND/kg compared to the beginning of last week, reaching 131,500 VND/kg.
Although coffee prices fell in the last trading session of the week due to the weakening of the Brazilian Real, leading to liquidation of long positions, the overall price of coffee still increased strongly over the week.
The rise in coffee prices has forced some Brazilian exporters to unwind their hedges, forcing them to buy futures contracts to cover their short positions, pushing prices even higher, according to Sucden Financial.
The highlight of the week was the price of Arabica coffee reaching its highest level since 1977. This is a remarkable milestone, similar to the period when the market increased sharply after the severe frost in Brazil in 1975, causing great losses in production.
In addition, delays in Robusta exports from Vietnam, where the crop is not favorable, have also contributed to the price increase. Increased demand for coffee due to the winter in the Northern Hemisphere has further accentuated this upward trend.
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 666 USD/ton compared to last week, at 5,471 USD/ton, and for January 2025 delivery increased by 693 USD/ton compared to last week, at 5,439 USD/ton.
Arabica coffee prices for December 2024 delivery increased by 25.10 cents/lb compared to last week, at 321.85 cents/lb, and for March 2025 delivery increased by 23.70 cents/lb compared to last week, at 319.35 cents/lb.
Mr. Do Ha Nam, Chairman of the Board of Directors of Intimex Group Joint Stock Company, one of the leading enterprises in the Vietnamese coffee industry, said that there are many reasons for the increase in coffee prices. However, the core reason is still that supply cannot meet demand.
The supply shortage is a clear reality. Coffee inventories on international exchanges are currently very low. This stems from the continuous increase in Arabica coffee prices on the New York floor, due to concerns about a decrease in supply from Brazil due to prolonged drought in many growing regions. In addition, the macroeconomic policies of the new Brazilian government have also contributed to this instability.