Coffee price today 8/6/2024

World coffee prices fell across the board as global supplies surged and financial markets were shaken.

Domestic coffee prices today, August 6, are currently trading in the range of 120,800 - 121,400 VND/kg, falling sharply along with the world market.

Coffee prices fell at the beginning of the week. The market is witnessing a rare phenomenon, when most assets are plummeting, stocks are collapsing, the USD is falling sharply, gold prices are falling freely... This development is contrary to the usual rule that when the USD increases, gold decreases and vice versa. According to experts, geopolitical tensions in the Middle East, fear of a US economic recession... have pushed the global financial market into panic.

History has witnessed sell-offs in the stock markets, along with a decline in gold prices. When the stock market plummeted, many organizations and investors holding gold sold this commodity to cover stock losses. The phenomenon of gold, USD, Bitcoin, stocks, etc. falling simultaneously can also be explained by the fact that bubbles have formed. Assets have been inflated over the past few years, including USD, gold and stocks. Global developments have pushed coffee on both exchanges to fall.

Thus, in the first session of the week, coffee prices fell to their lowest level in the past month. In addition to the above information, the latest report of the International Coffee Organization (ICO) said that global coffee exports in June increased by +3.8% compared to the same period last year to 10.78 million bags and global coffee exports from October last year to June this year increased by 10.1% compared to the same period last year to 103.47 million bags.

Both markets are now in the final stages of a short-term decline, largely due to the liquidation of long positions. A weaker Brazilian Real is also a bearish factor for coffee, which fell to a three-and-a-half year low against the dollar earlier this week.

Domestic coffee prices today, August 6, decreased by 1,200 VND/kg in key purchasing localities.

Recorded by World & Vietnam at the end of the trading session on August 5, the price of robusta coffee on the ICE Futures Europe London exchange decreased, the delivery term for September 2024 decreased by 52 USD, trading at 4,192 USD/ton. The delivery term for November 2024 decreased by 59 USD, trading at 4,058 USD/ton. Average trading volume.

Arabica coffee prices on the ICE Futures US New York floor also decreased, with the September 2024 delivery period decreasing by 4.80 cents, trading at 225.70 cents/lb. Meanwhile, the December 2024 delivery period decreased by 5.25 cents, trading at 224.30 cents/lb. Trading volume was high.

On the supply side, in its latest independent update to Brazil’s harvest forecast, commodity brokerage and consultancy StoneX has revised its 2024/25 Brazil coffee crop forecast lower by 1.64%, now likely at around 65.90 million bags. Its revised forecast this time calls for 44.70 million bags of arabica from the top producer, up 0.90% from its previous forecast, of which 21.20 million bags are Conillon robusta, down 6.60% from its previous forecast.

In terms of current developments, the trading market was flooded with red at the beginning of the week. The sharpest decline was in Robusta coffee, which at one point reached 162 USD/ton, close to 4,000 USD/ton. This is also the lowest level in about a month.

In addition, there was a time when the price of Arabica coffee fell by 209 USD/ton. However, when the price fell sharply, the trading volume increased, so the closing price of both commodities was not too deep. This shows that limited supply is still a major concern for European roasters and investors compared to the general market situation.

Coffee prices in the coming time will still be affected by the commodity and currency markets in general, as well as geopolitical tensions in many regions. Technically or fundamentally, there are still no promising signs for a change to increase again, perhaps the price of the robusta market will have to suffer a decrease this week, which is also the fourth consecutive week of price decline.