Domestic coffee prices
Domestic coffee prices decreased by 500 - 800 VND/kg compared to yesterday. Compared to the beginning of the week (February 26), coffee prices have decreased by an average of VND 1,200 - 1,500/kg, reflecting selling pressure when the market adjusted.
The decline in domestic coffee prices is mainly due to the impact of the international market. In addition, supply from Brazil and Vietnam continues to increase, creating pressure on prices.
World coffee prices
In the international market, Robusta and Arabica coffee prices both decreased slightly. Robusta lost about 28 - 36 USD/ton per day, while Arabica decreased by 0.5 - 1.6 cents/lb. Compared to the beginning of the week, Robusta lost more than 30 USD/ton, while Arabica decreased by an average of 1 - 2 cents/lb.
Abundant supply from Brazil and Vietnam has put the market under pressure. Arabica coffee inventories at ICE are showing signs of recovery, reducing concerns about shortages. At the same time, hedge funds also continued to cut buying positions, pushing prices lower.
Market analysis
Coffee prices are in a downward trend compared to the beginning of the week and the beginning of the month. Compared to the beginning of February, Robusta lost about 200 - 300 USD/ton, while Arabica decreased by more than 10 cents/lb. Market sentiment is still cautious, as supply from major producing countries such as Brazil and Vietnam is still abundant.
In addition, exporters also increase sales when the market shows signs of slowing down. Coffee inventories at exchanges are recovering, reducing the pressure of supply shortages. In this context, coffee prices are unlikely to increase sharply in the short term.
trend forecast
In the short term, coffee prices may continue to adjust due to the high selling pressure. However, consumer demand is expected to recover from March onwards, helping prices become more stable.
In the medium term, if inventory continues to increase, the market may face further downward pressure. However, if the weather in Brazil and Vietnam is unfavorable, the next crop's output may decrease, helping prices gradually recover.
Long-term forecasts still need to closely monitor supply and demand factors, especially in large markets such as Europe and the US.
