Inventories recover, causing coffee prices to drop sharply

Monday, May 06, 2024 21:57

On May 6, coffee prices stood at about VNĐ100,000 per kg, a decline of VNĐ30,000 per kg in less than one week. — VNA/VNS Photo

After reaching all-time high of over VNĐ130,000 (US$5.1) per kg, domestic coffee prices have dropped sharply in recent days.

On May 6, coffee prices stood at about VNĐ100,000 per kg, thus, they declined about VNĐ30,000 per kg in less than one week.

The current price is around VNĐ100,000 per kg in Central Highlands provinces, the coffee cultivation hub of Việt Nam.

On the world market, coffee prices on both London and New York exchanges decreased sharply. A recovery in coffee inventories on the Intercontinental Exchange (ICE) has eased supply concerns and caused coffee prices to fall.

In the trading session on May 3, Arabica coffee for July delivery declined by 5.35 US cents per pound to $200.75 per pound, while Robusta coffee fell by $139 per tonne to $3,541 per tonne – the lowest over the past month.

According to experts, domestic coffee prices have continued their sharp decline in recent days and reached their lowest level in the past month due to increased global coffee supply.

A coffee export business in the Central Highlands province of Đắk Lắk said that a hike in coffee prices recently is due to limited supply. When information on supply is more abundant, coffee prices will cool down.

In addition, rain in Việt Nam's key coffee growing areas last week helped ease concerns about the next crop's output.

Businesses expect that the upcoming harvest season in Indonesia and Brazil will generate new supply, reducing pressure on coffee prices.

According to the Ministry of Agriculture and Rural Development, Việt Nam exported 756,000 tonnes of coffee, earning nearly $2.57 billion in the first four months of the year, up 5.4 per cent in volume and 57.9 per cent in value from the same period last year. — VNS

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