The Department of Import and Export (Ministry of Industry and Trade) said that the current domestic coffee price dropped to a low level, people did not want to sell, leading to difficulties in purchasing coffee for export by traders and exporters.
In June 2020, domestic coffee prices continued to decline according to the world market, but the rate of reduction has slowed down. Specifically, on 30/6, the domestic market coffee price decreased the lowest by 0.3% in the districts of Eo H’leo and Buon Ho, Dak Lak province, down to 31,000 VND / kg; the highest decrease was 1.6% in Dak Ha district, Kon Tum province, down to 30,700 VND / kg. In Lam Dong province, coffee prices decreased by 1.0%, down to 30,300 – 30,400 VND / kg. At the port area of Ho Chi Minh City, Robusta coffee grade R1 decreased by 0.3% compared to the day 30/5, down to 32,500 VND / kg.
According to estimates, coffee exports in June 2020 reached 140 thousand tons, worth $ 237 million, up 7.5% in volume and 7.4% in value compared to May 2020, compared to June. / 2019 decreased 3% in volume and 1.9% in value. Generally for the first 6 months of 2020, coffee exports were estimated at 955 thousand tons, worth $ 1,609 billion, up 3.7% in volume and 2.5% in value over the same period in 2019.
The average export price of coffee in June 2020 is estimated at $ 1,693 / ton, down 0.02% from May 2020 but up 1.1% compared to June 2019. Generally in the first 6 months of 2020, the average export price of coffee reached about 1,685 USD / ton, down 1.2% over the same period in 2019.
On the world market, in June 2020, the price of Robusta coffee on the world market increased compared to the end of May 2020, but the uptrend would only take place in the short term; Arabica coffee prices fluctuated heterogeneously, increased on the New York trading floor but decreased on the BMF floor of Brazil.
The International Monetary Fund (IMF) adjusted its forecast for global economic growth to decrease by 3% in 2020. Meanwhile, the International Coffee Organization (ICO) said that if global GDP falls 1%, it will reducing coffee consumption by 0.95%. Weak consumer demand is also due to trade tensions between the US and China; between the US and the EU, the purchasing power in the agricultural commodity market is low. The growing concern of the second outbreak of Covid-19 has had a negative impact on the coffee market.
