Domestic coffee prices plummet
The domestic market this morning recorded a widespread downward trend.
In Dak Lak, coffee prices are trading at 126,000 VND/kg, down 5,000 VND.
Lam Dong is the locality with the strongest decrease, the price is still 124,800 VND/kg, down 5,400 VND.
In Gia Lai, coffee prices today also decreased by VND 5,000, to VND 126,000/kg.
Dak Nong recorded a decrease of 4,200 VND, down to 127,000 VND/kg.
World coffee prices
World coffee prices also continued to plummet in the trading session at the end of the week.
On the London Stock Exchange, Robusta futures for May 2025 decreased to 259 USD, closing to 5,112 USD/ton. The July 2025 term decreased by 283 USD, down to 5,105 USD/ton. Longer terms also fell sharply.
On the New York Stock Exchange, Arabica futures for May 2025 decreased by 19.55 cents, closing at 365.70 cents/lb. The July 2025 term decreased by 18.45 cents, down to 363.30 cents/lb. Longer terms all fell by over 17 cents.
Reasons for sharp decline in coffee prices
Regarding tariff factors, currently, Vietnamese coffee exported to the US is still subject to a tax rate of 0%, with no official changes. However, market sentiment is affected by concerns about the risk of the US expanding tariffs on imported coffee.
In a forecast from Reuters, experts warn that the hypothetical tax rate could be up to 46% for Vietnam, if it does, it will create great competitive pressure on Vietnamese coffee compared to other suppliers such as Brazil. However, domestic exporting enterprises have not yet recorded any changes from their US partner.
dealers said that this tax rate could push Vietnamese coffee out of the US market due to the huge price difference with Brazilian coffee - about 1,944 USD/ton. In addition, concerns about slowing consumer demand are rising, as US roasters struggle to convert rising costs to retail prices.
