Domestic coffee prices drop unprecedentedly
The domestic coffee market this morning recorded an unprecedented drop in many months. Coffee prices in the Central Highlands region have decreased sharply from 6,100 - 6,200 VND/kg compared to yesterday, bringing the price level down to 103,000 - 103,500 VND/kg.
In Dak Lak and Dak Nong, the trading price was the same at 103,500 VND/kg, down 6,200 VND. Gia Lai is at 103,300 VND/kg, while Lam Dong is the lowest in the region at 103,000 VND/kg, down 6,100 VND.
Within just 24 hours, domestic coffee prices have "evaporated" by more than 5% of the value. Compared to the beginning of 2025 (about 130,000 VND/kg), the current decrease has exceeded 26,000 VND/kg. However, compared to the same period in 2024 (istically 100,000 - 102,000 VND/kg), prices are still peaking.
World coffee prices plummet
In the international market, derivative coffee prices continued to fall sharply for the fourth consecutive session, with an increasingly large adjustment. On the London Stock Exchange, Robusta futures for July 2025 fell sharply by 299 USD/ton, down to 4,020 USD/ton. Other terms also plummeted from 233 to 264 USD/ton, bringing Robusta price level to the range of 3,752 - 3,891 USD/ton.
Similarly, on the New York Stock Exchange, Arabica coffee futures for July 2025 decreased by 10.95 cents/lb to 324.90 cents/lb. Longer terms also fell from 6.50 to 10.45 cents/lb, currently fluctuating between 308 - 322 cents/lb.
This is the deepest adjustment session since the beginning of May. The main reason comes from the pressure to make a profit from speculators and concerns about supply surplus when forecasting Brazil's output to increase thanks to favorable weather.
The market is flooded with negative psychology
The sharp decline in domestic coffee prices is an immediate reaction to negative developments in the international market. In the context of increased inventories, Brazil's weather is no longer unfavorable and the USD is stable again, the factors supporting prices are clearly weakening.
In the short term, coffee prices may continue to fluctuate strongly if there is no clear support from major consumer markets.
