After continuously increasing, coffee prices have plummeted suddenly. One of the reasons is that the first rains of the season in coffee growing areas in Vietnam and Brazil have cooled coffee prices.
According to Mr. Nguyen Quang Binh, an expert on the coffee market, updated at nearly 4:00 p.m. on May 2, the price of Robusta coffee on the London floor has decreased by more than 100 USD/ton compared to the closing price on May 1. to 3,881 USD/ton for delivery in July. On this day, coffee also decreased by 43 USD/ton compared to the previous trading day.
Thus, compared to the peak price set on April 27 at more than 4,400 USD/ton, this item has “evaporated” by more than 500 USD/ton. Mr. Binh said that this is a “terrible price drop” after the recent hot increase.
“I think that this year’s coffee crop, the opportunity to sell coffee at high prices on the floor has passed” – Mr. Binh commented.
Coffee prices plummeted but remained high
Meanwhile, Mr. Trinh Duc Minh, Chairman of Buon Me Thuot Coffee Association (Dak Lak province). Point out 4 reasons why world coffee prices cool down.
The first, When the May delivery deadline expires and moves to July, the parties holding the goods often push out strongly, causing prices to drop.
Monday, The Brazilian currency (BRL) is falling against the USD, stimulating coffee exporters of the world’s No. 1 coffee supplier to export.
Tuesday, Information about the first rain of the season in coffee growing areas of Vietnam and Brazil has partly eased worries about serious crop loss in the coming season.
Wednesday, Information about inventory on the floor being higher than normal levels reduces worries about coffee shortages.
Also according to the Chairman of Buon Me Thuot Coffee Association, normally every year, the peak of coffee prices will fall in April, when in the world only Vietnam has goods to sell but the supply is limited. Starting from May, when Brazilian coffee begins to harvest and in full bloom in July, the coffee supply is not as stressful as before.
However, according to some organizations and individuals monitoring the coffee market and agricultural products in general, coffee prices may only cool down temporarily. It cannot be ruled out that coffee prices will continue to increase in the near future.
In the domestic market, coffee prices are hovering around 128,000 – 130,000 VND/kg, lower than the peak price of about 5,000 VND/kg.
