Specifically, Arabica coffee prices lost 6.92% to 6,526 USD/ton, the lowest level in a week; Robusta coffee prices decreased for the second consecutive session, plummeting 10.63% compared to the reference to 4,834 USD/ton.
The Dollar Index soared nearly 1% yesterday after Mr. Trump announced on social media that he would impose 100% tariffs on BRICS countries if they intentionally created new currencies to replace the US dollar. USD. Meanwhile, the Brazilian real weakened, causing the USD/BRL exchange rate to spike 1.42%, to a historic high. The larger gap has fueled concerns that Brazilian farmers will push to sell coffee to benefit. This pulled cash flow out of the coffee market, causing prices to drop sharply.
Moreover, profit-taking selling pressure after the adjustment session last weekend increased pressure, pushing coffee prices to an unprecedented low in one session. In addition, technical adjustment activities after the surge also contributed to increasing pressure on prices.
Regarding basic information, the market still shows certain concerns about coffee supply in main producing countries. Notably, rainfall is continuously below the historical average in Brazil’s main coffee growing area, making the outlook for new crop supply negative. Somar Meteorologia reported 17.8 mm of rainfall in Minas Gerais, Brazil’s largest Arabica growing state, last week, or 31% of the historical average.
Also with concerns about the weather, consulting firm Hedgepoint in its global market report predicts that Brazil’s 2025-2026 coffee production will be about 65.2 million bags. Of which, Arabica coffee output is expected at 42.6 million 60 kg bags, down 1.4% compared to the previous crop. This unit also said that their output forecast may change based on the weather situation in the near future.
In the domestic market, as of 11:30 a.m. today (December 3), the domestic coffee market dropped sharply, on average plummeting nearly 11,000 VND/kg, causing prices to fluctuate between 117,000 – 117,500 VND/kg. The average coffee purchasing price in the Central Highlands provinces is 117,400 VND/kg.
Lam Dong is still the province with the lowest coffee purchasing price in the Central Highlands region. Compared to yesterday’s closing level (December 2), coffee prices in this area decreased sharply by 10,800 VND/kg, currently standing at 117,000 VND/kg.
In the same afternoon, the coffee purchasing price in Gia Lai province today ranked second on the rankings with a decrease of 10,800 VND, listed at 117,200 VND/kg.
Notably, Dak Nong and Dak Lak both hold the leading position in the province and city with the highest coffee purchasing level in the country, set at 117,500 VND/kg.
The domestic coffee exchange today dropped its price the deepest ever, ending a streak of increases lasting more than a week. Up to this point, domestic coffee prices have decreased by nearly 13,000 VND/kg.
