Robusta coffee price drops to $5,641/ton

At the end of yesterday's trading session, Arabica coffee prices fell 5.3% to $8,724/ton, while Robusta coffee prices fell 2% to $5,641/ton.

According to the Vietnam Commodity Exchange (MXV), the world raw material market was divided in yesterday's trading session (February 20). Notably, the metal market recorded a positive trading session when green covered most of the commodities in the group. On the contrary, in the industrial raw material market, the prices of two coffee commodities turned sharply down due to strong inventory recovery pressure. At the close, the dominant buying force supported the MXV-Index to increase by 0.1% to 2,379 points.

Thị trường hàng hoá: Giá cà phê Robusta giảm còn 5.641 USD/tấn

MXV-Index

Coffee prices plummeted

At the end of yesterday’s trading session, coffee prices showed a sharp decline as the market reacted to a strong recovery in inventories, triggering a wave of profit-taking by investors. Specifically, Arabica coffee prices fell 5.3% to $8,724/ton, while Robusta prices fell 2% to $5,641/ton.

Industrial raw material price list

According to the latest inventory report from ICE, Arabica coffee stocks have increased by 2.7% to 779,063 bags in the last two trading sessions, recovering from a nine-month low of 758,514 bags. Similarly, Robusta stocks have also shown signs of improvement, increasing from 257,820 bags to 260,820 bags. This information has stimulated investors to close long positions, increasing selling pressure and pushing prices down.

In addition, the supply-demand picture shows many noteworthy signals. Safras & Mercado said that as of February 11, the sales progress of the 2024-2025 crop in Brazil reached 88%, far exceeding the 79% in the same period last year and the average of 82% over the past five years, reflecting that market demand remains strong. This figure also shows that farmers have limited inventories, contributing to reducing selling pressure.

giá cà phê Arabica giảm 5,3% xuống còn 8.724 USD/tấn, trong khi giá Robusta giảm 2% còn 5.641 USD/tấn.

Arabica coffee prices fell 5.3% to $8,724/ton, while Robusta prices fell 2% to $5,641/ton. Photo: Hien Mai

On the other hand, in yesterday's trading session, sugar price increased by 1.74% to 464 USD/ton, marking a 6-session increase streak and reaching the highest level in more than two months.

The price increase was largely driven by concerns about supply shortages in India, the world’s second-largest sugar exporter. According to the latest figures from the Indian Sugar and Bioenergy Association (ISMA), sugar production from the start of the season (October 1, 2024) to mid-February 2025 was only 19.7 million tonnes, down 12% from the same period last year.

Notably, the number of operating mills in India has dropped sharply from 477 to 377, with 77 mills forced to close early due to lack of raw materials. This situation is expected to significantly affect export supply in the coming months, thereby continuing to support the upward momentum of raw sugar prices in the world market.

Strong buying power in the metal market

The metal market was covered in green in yesterday's trading session. At the close, silver prices recovered 1.34% to $33.49/ounce - the highest level since late October 2024. Meanwhile, platinum prices also increased 1.12% to $997.2/ounce, 4% higher than last month.

Metal price list

According to MXV, the main reason driving the increase in metal commodities comes from concerns about rising inflation in the US and signs of recovery in demand in China.

In a speech at a conference hosted by the Saudi Arabian Public Investment Fund in Miami on February 19, US President Donald Trump pledged to work with Republicans to implement a series of sweeping tax cuts to boost consumption and investment. His plan includes tax exemptions for service bonuses, social security and overtime, and tax incentives for domestic oil and gas producers. He also proposed allowing businesses to deduct the full cost of investing in new plants and other capital expenditures.

While these policies are expected to stimulate economic growth, experts warn that they could increase budget deficits and put upward pressure on prices and bring back inflation. This would spur safe-haven buying and support prices for precious metals.

Meanwhile, the Dollar Index fell 0.75% to 106.37 in yesterday’s session, far from its peak in nearly two years. The weaker US dollar makes silver and platinum more attractive to investors holding other currencies.

In the base metals market, COMEX copper prices rose more than 1% to $10,167 a tonne, up nearly 16% from the beginning of the year. Iron ore prices also rose 1.87% to $108.68 a tonne, marking the highest level since early October 2024.

Shanghai Metal Market Analysis (SMM) forecasts that the operating rate of copper wire and cable enterprises in China will increase from 70.08% to 78.39% next week. The improvement is seen as a sign of rising demand as production gradually recovers after the Lunar New Year holiday, along with increased buying from intermediaries on expectations of further copper price increases.

Meanwhile, according to a report by Chinese metals market analysis firm Mysteel, demand for rebar – a key raw material used in construction – has skyrocketed by 163% week-on-week to 1.69 million tonnes as of February 20. The strong growth of the construction steel industry shows that Beijing’s previous economic stimulus measures have begun to take effect, thereby opening up a positive outlook for iron ore consumption and pushing prices up.

Prices of some other goods