Domestic coffee prices
The domestic coffee market this morning (December 31st) continued to record a vibrant trading atmosphere when purchasing prices in key areas of the Central Highlands simultaneously surged sharply.
Compared to the previous trading session, the average coffee price has increased by another 600 VND/kg, bringing the regional average price to 97,900 VND/kg.
In Lam Dong, coffee prices recorded the most impressive increase of the day when they jumped to 1,300 VND/kg, bringing the purchase price from a low level of 95,700 VND yesterday to reach 97,000 VND/kg.
In the capital Dak Lak, the upward momentum was also maintained with an increase of 700 VND/kg, raising the purchasing price to 98,000 VND/kg.
Similarly, in Dak Nong (old), coffee prices also increased by 500 VND/kg, equaling the price with Dak Lak at 98,000 VND/kg.
In Gia Lai, agents adjusted upwards by 500 VND/kg, listing the purchase price at 97,800 VND/kg.
World coffee prices
The international coffee market has just experienced a mixed trading session.
The London exchange continues to show impressive form with green color covering the terms. Robusta futures for January 2026 delivery jumped 73 USD, closing at 4,092 USD/ton. The March 2026 delivery also increased 61 USD (equivalent to 1.57%), to 3,945 USD/ton. This increase was strengthened by concerns about supply disruptions in Southeast Asia.
Conversely, on the New York exchange, Arabica coffee prices were under profit-taking pressure and the USD strengthened. At the end of the session, Arabica futures for March 2026 delivery fell 1.95 cents (0.55%), to 350.20 cents/lb. The May 2026 delivery also fell 1.85 cents, closing at 335.05 cents/lb.
The fact that the Dollar Index (DXY) climbed to its highest level in the past week has triggered a wave of liquidation of buying positions on the New York Stock Exchange, causing Arabica to turn down after hitting a 2-week high in the session.
Coffee price assessment and forecast
The mixed developments of the two exchanges are reflecting different supply and demand stories. For Robusta, the driving force for price increases comes from information about serious floods in Indonesia - the third largest Robusta producer in the world. The Indonesian Coffee Exporters Association warns that floods in Northern Sumatra could reduce coffee exports of this country by up to 15% in the 2025-2026 crop year.
Meanwhile, Arabica, although decreasing in price, is still supported by weather factors in Brazil. According to Somar Meteorologia, the Minas Gerais region only received 11.1 mm of rain last week, equivalent to 17% of the historical average, raising concerns about the development of coffee crops next crop. However, pressure from domestic reports shows that November exports increased by 39% compared to the same period, along with forecasts that our country's 2025/2026 crop output will increase by 6% to 1.76 million tons, hindering the overheated growth of the market.
It is forecasted that in the early days of the new year 2026, domestic coffee prices are likely to continue to challenge the 100,000 VND/kg mark if the increase of Robusta London is maintained.
However, investors need to be cautious about inventory reports from ICE, as Arabica inventory has recovered to the highest level in the past 2 months, a factor that may cause slight downward pressure in the short term.
