Coffee price today April 5, 2025: Turning around and decreasing very sharply

Domestic coffee prices today

Domestic coffee prices today, April 5, 2025, in the Central Highlands region increased slightly compared to yesterday, fluctuating between 130,200 - 131,200 VND/kg.

Accordingly, traders in Dak Nong province are purchasing coffee at the highest price of 131,200 VND/kg. A sharp decrease of 2,400 VND/kg compared to yesterday.

Coffee price in Dak Lak province is 131,000 VND/kg, down 2,500 VND/kg compared to yesterday.

Similarly, coffee prices in Gia Lai province decreased by VND2,500/kg and were traded at VND131,000/kg.

In Lam Dong province, coffee prices decreased by VND2,300/kg and reached VND130,200/kg.

The US has just imposed a 46% reciprocal tax on coffee imported from Vietnam, the world’s second largest coffee producer. At the same time, Indonesia, the fourth largest coffee grower, is also subject to a 32% tax. South American countries such as Brazil and Colombia are only subject to a lower tax of 10%.

Vietnam is currently the third largest coffee supplier to the US market – the world’s largest coffee consumer. Exports from Vietnam are mainly robusta coffee, which is often used for instant coffee products and bottled beverages.

Vietnam will be the biggest beneficiary of the new tariffs, said Tomas Araujo, a broker at StoneX, warning that the U.S. supply chain and consumers will suffer from higher costs.

A European trader estimated that the 46% tariff would add about $2,500 to each ton of coffee imported from Vietnam. Meanwhile, the price of robusta coffee futures on the ICE exchange was at $5,390 per ton as of April 3.

It is not yet clear whether the tariffs will apply to shipments already en route to the US, causing confusion for many exporters.

Judith Ganes, president of J Ganes Consulting, said the coffee industry and U.S. confectionery manufacturers would certainly lobby to have coffee excluded from the tariff list. She also doubted the new tariffs would last.

In the short term, U.S. roasters could switch to buying robusta from Brazil. However, robusta supplies in Brazil are limited because the country produces mainly arabica.

On the other hand, when Vietnam is restricted from exporting to the US, cheap robusta from Vietnam may shift to markets such as Europe and China, which could benefit from additional supply at more competitive prices.

World coffee prices today

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

Robusta Coffee (London):

Delivery in May 2025: Down 181 USD/ton, to 5190 USD/ton.

Delivery in July 2025: Down 182 USD/ton, to 5206 USD/ton.

Arabica Coffee (New York):

May 2025 delivery: Down 14.5 cents/lb, to 370.75 cents/lb.

July 2025 delivery: Down 13.85 cents/lb, to 367.9 cents/lb.

Coffee prices have been under pressure in recent trading sessions due to a number of factors. One of the main reasons is favorable weather in major coffee growing regions of Brazil such as Minas Gerais and Espírito Santo. More than expected rainfall has improved the prospects for the new crop, especially as Brazil prepares to enter the Robusta/Conilon harvest in April.

In addition, after a series of days of strong price increases, profit-taking pressure from hedge funds and investors also pushed coffee prices down. Fears that supply will be more abundant in the near future made the decline even more pronounced.

According to Marex Solutions’ forecast, Vietnam’s Robusta output in the 2025/26 crop year could reach 28.8 million bags, up nearly 8% from the previous crop. Brazil is also forecast to reach 25 million bags, up 13.6%. These figures continue to put pressure on global coffee prices.

In the short term, coffee prices may continue to be under pressure if positive weather forecasts in Brazil continue to be supported. However, Vietnam's export prospects remain bright as the coffee industry brought in $2.8 billion in the first quarter of 2025. If prices remain stable around $5,500 - $6,000 per ton, the annual export target of $8 billion is entirely feasible.

According to Barchart, the last trading session recorded mixed developments in the coffee market. The reciprocal tariffs imposed by US President Donald Trump have made investors concerned about increased risks in the global financial market. This affects consumer sentiment and puts downward pressure on coffee prices.

Robusta coffee prices, however, recovered after a sharp decline earlier in the session. Concerns that the 46% tariff imposed by the US on exports from Vietnam could disrupt the flow of robusta coffee and further strain supplies helped prices recover as Vietnam remains the world’s largest producer of robusta.

Meanwhile, arabica prices fell but not too much thanks to the strong Brazilian real. The currency is now at its highest level in more than five months against the dollar, reducing the incentive for Brazilian coffee producers to export, thereby helping to limit the decline in prices.

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Source: https://baonghean.vn/gia-ca-phe-hom-nay-5-4-2025-quay-dau-giam-rat-manh-10294491.html