Positive signal for the coffee industry

Chinhphu.vn) – Compared to the beginning of this year, domestic coffee has even increased strongly by about 8,800 VND/kg. This is a very positive signal for coffee growers in the country.

On the domestic market, recorded this morning on April 6, the price of green coffee beans in the Central Highlands and southern provinces continued to extend the upward trend.

On the domestic market, recorded this morning on April 6, the price of green coffee beans in the Central Highlands and southern provinces continued to extend the upward momentum. Accordingly, domestic coffee is purchased in the range of 49,000-49,400 VND/kg; 400 VND/kg increase compared to yesterday.

Thus, the domestic coffee price has increased by 1,300 VND/kg in 1 month. Compared to the beginning of this year, domestic coffee has even increased strongly by about 8,800 VND/kg. This is a very positive signal for coffee growers in the country when the cost of output products is increasing day by day.

World coffee prices rise

At the end of the trading session on April 5, the green color continued to dominate on the price list of industrial raw materials. Notably, the two coffee products both rebounded strongly thanks to the support from the fear of supply shortage.

Arabica coffee bounced up more than 3% thanks to support from continued decline in inventories. According to ICE’s daily report, the standard Arabica stock on ICE London has fallen to 731,959 bags of 60 kg, the lowest level since December 13, 2022, which raises concerns about short-term supply shortages. term, thereby supporting the price increase. Besides, concerns about supply shortage were further increased after the monthly export report of the International Coffee Organization (ICO) with a sharp decline in Arabica. Specifically, Brazilian Naturals decreased by 33% and Colombian Milds decreased by 6.8% in February, helping to support the price increase yesterday.

Thanks to the pull of Arabica as well as concerns about shortage of supply in the market, Robusta price recorded an increase of 2.66% yesterday. Robusta exports in February globally also recorded a sharp decrease from 3.35 million bags in March 2022 to 2.89 million bags in February 2023. This raises concerns about supply shortage in the main supplying countries at the moment, thereby supporting the price to continue the rally to the third consecutive session.

Raw sugar continues to set a new price record after increasing by 2.14% yesterday, the price reached the highest level since October 2016. Concerns about a supply shortage continued to be reinforced as the Sugar Mills Association of India said the country had produced 30 million tonnes in the current season, down more than 3% from the same period last year. Combined with low production forecasts in other major producing countries such as Thailand and China, it has pushed the market into a state of concern about a global supply shortage, thereby supporting prices to continue moving. go up.

On the other side, palm oil price dropped sharply by more than 2% yesterday, ending the strong rally in the previous 2 sessions due to profit-taking pressure. In a Reuters survey, traders and analysts expect Malaysia’s end-March palm oil inventories to reach 1.77 million tonnes, down 16.3 percent from a month ago. Lowest inventory levels since July last year. This is information that is restraining the decline of palm oil.

Commodity Exchange of Vietnam (MXV)