Coffee price today 4/3/2025: Strong increase again

Domestic coffee prices today

Domestic coffee prices today, April 3, 2025, in the Central Highlands region increased slightly compared to yesterday, fluctuating between 132,300 - 133,600 VND/kg.

Accordingly, traders in Dak Nong province are purchasing coffee at the highest price of 133,600 VND/kg. A sharp increase of 1,300 VND/kg compared to yesterday.

Coffee price in Dak Lak province is 133,500 VND/kg, an increase of 1,200 VND/kg compared to yesterday.

Similarly, coffee prices in Gia Lai province increased by VND1,300/kg and were traded at VND133,500/kg.

In Lam Dong province, coffee prices increased by VND1,100/kg to VND132,300/kg.

In the short term, coffee prices are expected to continue to fluctuate within a wide range, as the market remains affected by weather factors and speculative sentiment. Both major exchanges have shown signs of recovery, indicating that if there is no unexpected negative news, the price level may remain high in the near future.

In the medium term, Robusta production in Brazil and Vietnam is forecast to remain high, creating significant supply pressure. However, low inventories and rising demand in Europe and the United States could help coffee prices maintain their upward momentum.

According to the Vietnam Coffee and Cocoa Association (VICOFA), Vietnam’s coffee output this crop year will decrease by about 5%, to about 27 million bags, equivalent to 1.62 million tons. The reason is climate change and the shrinking coffee growing area due to land use conversion. Of this, about 1.4 million tons will be for export, the rest will serve the domestic market.

Despite the reduced supply, farmers are not selling as much as before. They tend to hold onto their stocks waiting for better prices, contributing to the high domestic coffee prices even during the peak harvest season.

World coffee prices today

Coffee prices on the world market fell sharply on both exchanges:

Robusta Coffee (London):

Delivery in May 2025: Up 3 USD/ton, to 5,272 USD/ton.

July 2025 delivery: Up 11 USD/ton, to 5,306 USD/ton.

Arabica Coffee (New York):

May 2025 delivery: Up 5.75 cents/lb, to 385.5 cents/lb.

July 2025 delivery: Up 6.1 cents/lb, to 381.5 cents/lb.

One of the factors that has caused coffee prices to increase sharply recently is the concern that the Trump administration may impose import taxes on coffee from the Americas.

Although there has been no official move, traders in the US have increased imports to “anticipate” the worst-case scenario. According to the National Coffee Association (NCA), if the US imposes high tariffs on coffee from Brazil and other North American countries, coffee prices in this market will continue to increase sharply.

The decline in export volumes from the world’s two largest coffee exporters – Brazil and Vietnam – is also a major factor pushing up prices. In Brazil, Arabica coffee export prices have reached a record high of $8,600–8,800 per tonne.

According to the Brazilian Coffee Exporters Association (Cecafe), in February 2025 alone, the country's green coffee exports decreased by 12% compared to the same period last year, to only about 3 million bags.

Brazil’s crop forecasting agency Conab also forecasts that coffee production in the 2025/26 crop year will fall 4.4% from the previous crop year, to its lowest level in three years. The reason is that the El Nino phenomenon will cause a prolonged drought in 2024, severely affecting coffee trees in South and Central America.

The Food and Agriculture Organization of the United Nations (FAO) said that the current record coffee price is not simply due to inflation, but mainly due to climate change reducing production.

In Vietnam alone, in the first two months of 2025, coffee exports decreased by nearly 15% compared to the same period last year, causing the market to worry that global supply will continue to tighten.

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Source: https://baonghean.vn/gia-ca-phe-hom-nay-3-4-2025-tang-manh-tro-lai-10294315.html