Domestic coffee prices
On November 17, coffee prices in key Central Highlands regions were mostly stable, except for Lam Dong province, which decreased slightly by VND 200/kg, bringing the average price in the whole region down to VND 110,300/kg. extended the decline last week.
In Dak Lak and Dak Nong (old), the price reached 110,500 VND/kg. Gia Lai offers the market price at 109,800 VND/kg.
Compared to 1 week ago, domestic coffee prices nearly reached VND 120,000/kg, the new price decreased sharply to VND 9,100/kg. This is also the lowest price in the first 2 weeks of November.
World coffee prices
The international coffee market (trading on November 17) was unchanged on the two exchanges London and New York.
Robusta ( London) opened the trading session at 4,249 USD/ton (term 11/25). This is also the highest price to date, although it has decreased by 120 USD/ton compared to the previous trading session.
Arabica (New York) is no exception, also moving at 399.80 cents/lb (12/25 term). Compared to the low of 390.00 USD/ton, the current price is 9.8 cents/lb higher. Long terms currently range from 330.80-174.00 cents/lb.
Coffee price assessment and forecast
US President Donald Trump has signed a decree to exempt counterpart tariffs on a series of foods that the country does not have the advantage of producing, including coffee. The above move mainly affected the decline of coffee on both exchanges last week.
The sharp declines on the two coffee exchanges in recent days reflect a combination of many factors that put pressure on the market. According to experts, the new trade agreements that the US has just reached to lower coffee, chocolate and banana prices have directly affected global price movements.
The US is the largest import market, while Brazil leads in export value. Vietnam ranked 8th in value with 364 million USD, but in terms of volume, it increased to 3rd place. Therefore, fluctuations from the US side have a clear impact on the domestic market.
Along with that, the bumper coffee crop in Vietnam has caused a sharp increase in supply, creating pressure on domestic market prices. Market developments are even more negative as the USD fluctuates thanks to the recovery of US stocks and expectations that the Fed can cut interest rates in December, causing difficulties for agricultural commodity groups.
