Domestic coffee prices
On October 4, coffee prices in key Central Highlands regions increased by VND1,600/kg, bringing the average price of the whole region to VND116,900/kg.
The increase is strong across the region:
Lam Dong increased the most by VND 2,000/kg to VND 115,500/kg.
Gia Lai increased 1,800 VND/kg to 116,800 VND/kg.
Dak Lak and Dak Nong (old) respectively reached 117,000 VND/kg.
Compared to the peak in August, the current price has significantly narrowed the gap with the historical peak in late August. The price has only decreased net by VND 5,100/kg compared to VND 122,000/kg.
World coffee prices
Robusta and Arabica prices both exploded strongly, consolidating the upward trend:
Robusta price ( London): Continued skyrocketing. The contract for November/25 increased by 205 USD/ton, equivalent to 4.74%, to 4,527 USD/ton. This is an extremely impressive growth rate.
Arabica price (New York City): Also increased sharply. The December/25 contract increased by 12.00 US cents/lb, equivalent to 3.25%, closing at 390.75 US cents/lb.
The synchronous and strong increase of both types of coffee in the world market is the main driving force for the recovery of domestic coffee prices.
Coffee price assessment and forecast
The coffee market is showing that the basic factors supporting prices have completely dominated.
Robusta's continued and strong price increase is driven by record-low inventories and persistent supply pressure (due to tariffs and weather risks).
With this increase, the domestic market is aiming to re-check the psychological threshold of VND 120,000/kg in the coming trading week.
The short-term trend forecast is very positive. Unless there is an unexpected event that has a major impact on policy or supply (such as a positive output report from Brazil), the price increase will likely continue to be maintained.
