Last week witnessed a notable downturn in coffee prices as market sentiments turned bearish. This was driven by numerous speculators, funds selling off their long. In the local market, however, the lack of substantial buyers in the physical market contributed to the collapse in both the FOB differential and local farmgate price. As a result, the farm gate price fell from the high of 135,000 VND per kg to 102,000 VND per kg during the weekend, with sizable buying force on the demand sides when the farmgate price touched the low range.
In terms of differential price, the record of 1300 vs July London ICE Robusta last week is now a history and differential today accepts the level of 700 vs July London ICE Robusta. This week is an interesting week to see how the differential behaves.
Regarding the weather in coffee growing areas, during the week from 27th April 27 to 3rd May, there was an enhancement in rainfall levels across the provinces. Particularly in Gia Lai and Kontum, which had been experiencing drought conditions previously. Moreover, other provinces like Lam Dong, Dak Lak, and Dak Nong experienced consistent and good rainfall. This improvement has reduced the possibility of production damage for next crop's harvest, crop 2024/2025.
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