Coffee prices today, December 21, 2024: Plummeting, why?

Domestic coffee prices today

Specifically, the price of coffee in Dak Lak today decreased by 1,800 VND/kg compared to yesterday, reaching 122,000 VND/kg.

Coffee prices in Lam Dong today also decreased by 1,000 VND/kg compared to yesterday, reaching 121,500 VND/kg.

Similarly, today's coffee price in Gia Lai decreased by 1,800 VND/kg compared to yesterday, reaching 121,800 VND/kg.

Coffee prices in Dak Nong today remain at their highest level, down 2,000 VND/kg compared to yesterday, reaching 122,000 VND/kg.

The US dollar index (DXY00) rose to its highest level in two years on December 19, putting negative pressure on the prices of many commodities, including coffee.

According to Reuters, the price of robusta coffee – Vietnam's staple coffee – has fallen to its lowest level in 1.5 weeks. The main reason is that market attention is focused on the harvest in Vietnam, the world's largest producer of robusta coffee.

This week, coffee trading in Vietnam has been relatively quiet as the market enters the Christmas holiday season. According to traders, the main reason is the reduced coffee supply due to unfavorable weather conditions, which have disrupted harvesting in major coffee-growing regions.

World coffee prices today

At the close of the most recent trading session, Robusta coffee prices in London for January 2025 delivery rose by $39/ton compared to yesterday, reaching $5,100/ton, while prices for March 2025 delivery increased by $32/ton compared to yesterday, reaching $5,078/ton.

Arabica coffee prices for March 2025 delivery increased by 4.75 cents/lb compared to yesterday, reaching 328.50 cents/lb, while May 2025 delivery increased by 4.95 cents/lb compared to yesterday, reaching 323.25 cents/lb.

According to the latest report from the U.S. Department of Agriculture (USDA), global coffee production in the 2024-2025 crop year is expected to reach nearly 10.5 million tons, an increase of 414,000 tons compared to the previous crop year.

Despite increased production, the USDA warns that ending coffee inventories for the 2024-2025 crop year will decline sharply. Global inventories are projected to fall to just 20.9 million bags, the lowest level in 24 years, a 6.6% decrease from 22.3 million bags in the 2023-2024 crop year. This could put pressure on supply in subsequent crop years.

In the US market, consumers are expected to consume approximately 1.5 million tons of coffee in 2024-2025, solidifying its position as one of the world's largest markets.