Discount 1,200 VND/kg on weekends

Coffee prices today (June 24) in the domestic market turned down by 1,200 VND/kg. Accordingly, the lowest transaction price in the localities was 64,600 VND/kg, recorded in Lam Dong province.

Update domestic coffee prices

According to a survey at 9:50, today's coffee price decreased by 1,200 VND/kg.

According to records, localities are purchasing coffee at prices ranging from 64,600 - 65,300 VND/kg.

Of which, Lam Dong province has the lowest price of 64,600 VND/kg. Next is Gia Lai province with the price of 64,800 VND/kg.

At the same time of survey, Dak Lak province had a purchase price of 65,100 VND/kg.

Dak Nong recorded a transaction price of 65,300 VND/kg - the highest among the surveyed localities.

Market	Medium	Change
Dak Lak	65,100	-1,200
Lam Dong	64,600	-1,200
Gia Lai	64,800	-1,200
Dak Nong	65,300	-1,200
USD/VND exchange rate	23,320	+10

Unit: VND/kg

Exchange rate according to Vietcombank

Coffee price developments from January to June 24. (Synthesized by *Anh Thu* )

Update world coffee prices

According to records, coffee prices on the world market decreased. Specifically, the online price of robusta coffee in London for delivery in July 2023 was recorded at 2,738 USD/ton after decreasing by 1.93% (equivalent to 54 USD).

The price of Arabica coffee for delivery in July 2023 in New York was at 164.85 US cents/pound after decreasing 3.17% (equivalent to 5.4 US cents) at the time of survey at 6:30 a.m. (Vietnam time).

Coffee prices have been strong this year, making it one of the best-performing agricultural commodities this year. Cash contracts are trading at $183, 30% above the year's low.

In a statement, Australian forecasters predicted a 70% chance of an El Nino occurring. If forecasters are correct, many parts of the world will experience El Nino this year, a major catalyst that could push coffee prices significantly higher in the coming months.

El Ninos have had a negative impact on the economy in the past. In some places, record-breaking rainfall destroys crops and causes drought. When El Nino is accompanied by La Nina, other parts of the world experience record-breaking temperatures, leading to famine.

In a report this week, Fitch said El Nino would affect some of the largest coffee-producing countries, including Indonesia and Vietnam. Vietnam is the world’s second-largest coffee producer, producing more than 1.5 million tonnes a year. Indonesia is the fourth-largest producer.

“The widely expected transition to El Nino conditions in the third quarter of this year has raised concerns about lower output in Vietnam and Indonesia, both major robusta coffee producers,” the report pointed out.

Other major coffee producing countries such as Brazil and Colombia will also be affected if this weather phenomenon occurs, according to Kalkine Media.

At the same time, coffee prices are rising due to the ongoing drought that is affecting some coffee growing regions in Brazil, which sells millions of tons of coffee each year.

Meanwhile, the recent ICO report showed that coffee exports fell in April. Exports from South America fell by 6.4% while those from Africa fell by 9.8%. Exports from Asia and Oceania fell by 1% while those from Mexico and Central America increased by 1%. Overall, coffee production is expected to fall by 1.4% in the 2021-2022 crop year while consumption is expected to increase by 4.2%.

Source