As of 11:30 a.m. today (November 7), the domestic and international coffee markets have both dropped sharply, averaging a decrease of VND1,000/kg, causing prices to fluctuate between VND105,500 - VND106,000/kg. The average coffee purchase price in the Central Highlands provinces is VND106,000/kg.
Coffee purchasing prices in the three provinces of Dak Lak, Dak Nong and Gia Lai today all decreased by 1,000 VND/kg, currently fluctuating around 106,000 VND/kg.
Lam Dong is still the province with the lowest coffee purchasing price in the Central Highlands. Compared to yesterday's closing price, the coffee price in this region has now reached 105,500 VND/kg, down 1,000 VND/kg.
The domestic coffee trading session at the beginning of the week saw an increase in prices, however, towards the end of the week, these signals were not very positive. After 2 days of being filled with green, coffee prices reversed and returned to nearly 105,000 VND/kg.
On the London and New York exchanges, the coffee market was in the red. At the end of the most recent trading session, the January 2025 and March 2025 delivery periods of Robusta coffee both increased by 54 USD/ton, to 4,372 USD/ton and 4,303 USD/ton, respectively.
In the New York Arabica coffee market, contracts for delivery in December 2024 and March 2025 remained unchanged from yesterday's closing session, currently standing at 242.95 cents/lb and 242.40 cents/lb.
The US dollar surged to a four-month high after the White House officially opened its doors to Donald Trump, with economic activity also hoping that Trump’s policies on immigration, tariffs and trade could boost US growth.
The impact of the heat wave and prolonged lack of irrigation water coinciding with the time when coffee trees flower and bear fruit will also cause some coffee gardens to have wilted leaves, dry flowers, and young fruit, reducing productivity and output.
Commenting on the current market, the Vietnam Coffee and Cocoa Association said that product price reversals are a common occurrence during the harvest season. In addition, the European Union has suspended anti-deforestation regulations for another 12 months, reducing supply pressure. Domestic coffee prices will also only decrease in the short term.
Vietnam's coffee output this year is forecast to decrease by 10% due to heat and drought in some Central Highlands regions reducing productivity, while reserves from the previous crop have been depleted.
Regarding the long-term plan, the Department of Crop Production said that the country's coffee area has increased to 718,000 hectares by the end of 2023 and will continue to expand in 2024 due to high demand for seedlings. In the world, the planting area also tends to increase to meet demand and stabilize prices.
