Domestic coffee prices
The domestic coffee market this morning increased by 2,300 - 2,500 VND/kg, accordingly:
Coffee prices in Dak Lak: 116,800 VND/kg, up 2,300 VND.
Coffee prices in Lam Dong: 116,000 VND/kg, up 2,500 VND.
Coffee prices in Gia Lai: 116,700 VND/kg, up 2,400 VND.
Coffee prices in Dak Nong (old): 116,900 VND/kg, up 2,300 VND.
The average coffee price in the whole market reached 116,800 VND/kg.
Compared to the end of August (8.30), when domestic coffee prices were common at 121,700 - 122,600 VND/kg, the price level is now 5,000 - 6,000 VND/kg lower.
World coffee prices
London Robusta: the 09/25 term reached 4,693 USD/ton (+106 USD), the 11/25 term increased to 4,477 USD/ton (+106 USD).
Arabica New York: the 12/25 term reached 386.90 US cents/lb (+5.10), the 03/26 term was at 373.55 US cents/lb (+4.85).
World coffee prices increased sharply due to concerns about drought in Brazil before the important flowering period of coffee trees. Somar Meteorologia said Minas Gerais state the largest arabica growing area had no rain in the week ending September 6.
Coffee inventories on the ICE floor continued to be low: arabica inventories fell to 679,548 bags, the lowest in 16 months; robusta inventories were only around 6,608 lots, close to the bottom of 1.5 months.
In addition, coffee prices are also supported by the forecast of decreasing Brazilian output: Contab lowered the forecast of arabica 2025 output to 35.2 million bags (-4.9% compared to the forecast in May. The International Coffee Organization (ICO) also reported that global coffee exports in July decreased by 1.6% over the same period, down to 11.6 million bags.
The US market continues to be short of supply as many importers cancel orders from Brazil due to the 50% tax on green coffee. Brazil accounts for about a third of US coffee imports, according to Barchart.com.
