Domestic coffee market: decreasing slightly after a series of days increased sharply
At 11:20 am, domestic coffee prices recorded the adjustment of VND 500/kg.
Coffee prices in Dak Lak, Gia Lai and Dak Nong recorded at 129,000 VND/kg, down 500 VND/kg.
Coffee prices in Lam Dong recorded at VND 128,000/kg, down 500 VND/kg.
Despite slightly reduced adjustments, domestic coffee prices remain high compared to the average for many years. The market is still affected by the situation of tightening supply when inventory in many main growing areas dropped sharply.
According to the latest figures, Vietnam's coffee export output in January recorded a decline compared to the same period last year but increased compared to the previous month. The increase in exports makes the domestic supply more limited, creating the motivation to keep coffee prices high.
World coffee market: Arabica peaked, Robusta adjusted
On the London floor, the price of Robusta coffee adjusted decreases after a series of consecutive increase:
March 3, 2025: 5,561 USD/ton, down nearly 3% compared to the beginning of the previous week.
Delivery May 5.2025: 5,564 USD/ton, adjusted after reaching a record high.
Meanwhile, Arabica on the New York floor continues to make a peak:
Delivery March: 404.35 cents/lb, unchanged compared to the previous session but increased by more than 7% of the week.
Delivered May 5.2025: 396.70 cents/lb, continuing to maintain a rising momentum.
According to experts, the price of Arabica coffee is increasing sharply due to a serious decline in supply. Arabica inventory by ICE has decreased by more than 14% compared to the beginning of the year, reaching the lowest level in two and a half months. In addition, the Brazilian Real coin continues to strengthen against the USD, promoting Arabica's rising momentum. Chris Beauchamp, Director of Market Analysis at IG, said: "The weather challenges in Brazil, the largest coffee producer in the world, seriously affected the global supply."
In the opposite direction, Robusta is under pressure from the liquidation of investors' purchases, along with the situation that Vietnamese farmers promote the sale after Tet holiday.
Judgment and forecast
Experts predict, after 12 continuous increase, it is likely that Arabica price will have a technical adjustment this week. However, the limited supply is still a high price factor.
Meanwhile, the price of Robusta, although there are signs of slowing down, is still anchored in the highlands, reflecting strong demand from the market. If the situation of goods continues, domestic coffee prices can recover soon and return to 130,000 VND/kg in the coming days.
