Advertisements

Coffee Prices Surge Globally and Domestically on December 7, 2024

by Jessica

ISLAMABAD, Dec 7, 2024 — Coffee prices continued their upward trajectory on the world market as of 4:30 a.m. on December 7, with significant increases observed across major coffee futures exchanges.

On the London market, Robusta coffee prices surged, with increases ranging from $233 to $258 per ton. Specifically, the January 2025 delivery term rose by $258 to $5153 per ton, while the March 2025 delivery reached $5116, up $243 per ton. Other delivery terms also saw notable increases, with the July 2025 contract hitting $5000 per ton, up $233.

Advertisements

Similarly, Arabica coffee prices on the New York floor saw a sharp rise, with prices increasing by 13.05 to 16.75 cents per pound. The March 2025 contract rose by 16.75 cents to $330.25 per pound, while the July 2025 contract reached $321.95 per pound, up by 15.40 cents.

Advertisements

Brazilian Arabica coffee prices also experienced significant gains, with the December 2024 contract increasing by $14.95 to $405.00 per ton. Other delivery terms, such as May 2025 and July 2025, saw increases of $21.55 and $20.35 per ton, respectively.

Advertisements

In Vietnam, domestic coffee prices also continued to rise sharply, with an average price increase of about VND 5,600 per kilogram. By 4:30 a.m., the average coffee purchase price in the Central Highlands provinces had reached VND 120,100 per kilogram. Prices in various provinces were as follows: Gia Lai at VND 120,000 per kilogram, Dak Nong at VND 120,200 per kilogram, and Dak Lak at VND 120,000 per kilogram. In Lam Dong, coffee was purchased at VND 118,500 per kilogram in districts like Bao Loc, Di Linh, and Lam Ha.

Advertisements

This marked the third consecutive day of price increases in the global coffee market, reversing the losses from previous declines. Domestically, this was the second consecutive day of sharp price hikes.

Experts suggest that the rise in domestic coffee prices may be due to several factors, including speculation. Some businesses, having taken advantage of earlier price drops to buy coffee and clear contract debts, are now “holding on” to stock for future profit. Additionally, the global coffee market continues to face a supply-demand imbalance, with low supply and increasing demand.

The harvest season is still in its early stages, with only around 30% of the crop gathered, and farmers are not under immediate economic pressure. As a result, they have not been quick to sell off their coffee, contributing to the upward price trend.

Reuters reports that despite being in the midst of the harvest season, Vietnam’s coffee prices remain high due to strong demand and limited supply. Farmers in the Central Highlands have harvested only about 2% of the coffee crop so far. Many are not facing financial stress thanks to income from other crops like durian and pepper, allowing them to hold off on selling until prices improve. Meanwhile, speculators are also helping to drive prices up by “holding onto goods.”

Experts predict that the upward trend in both domestic and global coffee prices will continue, with prices expected to rise further into December 8, 2024.

Related topics:

Advertisements

Related Articles

blank

Welcome to CoffeeFranchiseHub.com – your go-to destination for all things coffee franchise! Explore opportunities, industry insights, and expert advice to brew success in the booming coffee business. Start your journey with us today! 【Contact Us: wougua@gmail.com】

Copyright © 2023 coffeefranchisehub.com