Domestic coffee prices
The domestic coffee market this morning, March 26, witnessed a fairly strong downward adjustment after reaching a high level in the middle of the week. Agents in the Central Highlands region reduced purchase prices from 800 to 1,000 VND/kg, causing the average price of the whole region to fall back to the threshold of 93.2 million VND/kg.
Detailed changes in localities:
Dak Lak and Gia Lai: Both decreased by 800 VND, currently purchasing at the mark of 93. 200 VND/kg.
Dak Nong (old): Recorded a decrease of 1,000 VND, pushing prices here down to 93.2 million VND/kg.
Lam Dong: Adjusted down 1,000 VND, currently fluctuating around the threshold of 92. 200 VND/kg.
World coffee prices
Wednesday's trading session saw both London and New York exchanges turn down as concerns about sea transport disruptions began to cool down.
New York Stock Exchange (Arabica): May 2026 futures fell 1.75 cents (-0.55%), closing the session at 316.10 cents/lb. Selling pressure appeared as there were hopes for US diplomatic efforts to end the conflict in Iran, helping to reopen the Strait of Hormuz. In addition, Arabica's ICE inventory is still at its highest level in 6 months (585.621 bags).
London exchange (Robusta): May 2026 delivery futures fell 33 USD (-0.90%), closing at 3,629 USD/ton. The decline occurred despite Robusta inventories on the ICE exchange still at a record low of 2.25 months (4,211 lots). Forecasts of a record crop of 75.3 million bags from Brazil and a 14% increase in exports from Vietnam continue to be major obstacles.
Market outlook
The coffee market is showing extreme sensitivity to geopolitical news. The sharp increase in logistics, insurance and fuel costs due to the closure of the Strait of Hormuz was once a stepping stone for Arabica prices to break through to a 7-week peak. However, when peace expectations appeared, the market immediately reacted with a strong profit-taking.
It is forecasted that in the coming sessions, coffee prices will continue to be in a state of stalemate in the range of 92,000 - 94,000 VND/kg. Basic factors such as low rainfall in Minas Gerais (only reaching 45% of the historical average) and Robusta inventory scarcity will prevent prices from falling deeply.
*Note: The actual price may differ depending on the quality and purchasing area.
