Coffee prices today, March 22, 2025: Sharp decline due to profit-taking.

Domestic coffee prices today

Domestic coffee prices in the Central Highlands region today, March 22, 2025, remained unchanged compared to yesterday, fluctuating between 132,500 and 133,500 VND/kg.

Accordingly, traders in Dak Nong province are buying coffee at a maximum price of 133,500 VND/kg, a sharp decrease of 1,500 VND/kg compared to yesterday.

Similarly, the price of coffee in Dak Lak province is 133,500 VND/kg, a sharp decrease of 1,500 VND/kg compared to yesterday.

Coffee prices in Gia Lai province decreased by 1,300 VND/kg and are trading at 133,500 VND/kg.

In Lam Dong province, the price of coffee decreased by 1,200 VND/kg and is now at 132,500 VND/kg.

According to the Vietnam Coffee and Cocoa Association (VICOFA), Vietnam's coffee export turnover exceeded $2 billion in just the first 2.5 months of the year. In particular, the sharp increase in world coffee prices during the first 15 days of March significantly boosted Vietnam's export turnover.

Brazil and Vietnam are the world's two largest coffee producers, accounting for nearly 50% of global production. Meanwhile, the European Union and the United States are the largest coffee consumers and importers.

According to the International Coffee Organization (ICO), global coffee production for the 2023/24 season is projected to fall by 20% compared to forecasts, particularly in major producing countries like Vietnam and Brazil. Furthermore, the growth of the food and beverage industry in major markets such as the US, Europe, and China is also driving demand for coffee imports.

Coffee is one of the most consumed and traded commodities in the world. The coffee industry provides livelihoods for approximately 25 million farmers and millions of jobs throughout the value chain. For many low-income countries, coffee exports are a crucial source of foreign exchange, enabling them to import essential goods and services.

World coffee prices today

Coffee prices on the world market are also subject to many fluctuations:

Robusta coffee (London):

May 2025 delivery: Increased by $19/ton, to $5,516/ton.

July 2025 delivery: Increased by $26/ton, to $5,508/ton.

Arabica coffee (New York):

May 2025 delivery: Down 2.65 cents/lb, to 389.5 cents/lb.

July 2025 delivery: Down 2.2 cents/lb, to 383.4 cents/lb.

Coffee prices are currently under profit-taking pressure following the strengthening of the US dollar against other major currencies. In its recent policy meeting, the Fed decided to keep the benchmark interest rate unchanged at 4.25%-4.50%, while also projecting two rate cuts of 0.25 percentage points later this year.

According to the USDA report, global coffee production for the 2024/25 crop year is expected to increase by 4% compared to the previous year, reaching 174.855 million bags. However, ending stocks are projected to decrease by 6.6%, to their lowest level in 25 years.

In addition, Volcafe predicts that the global arabica market will have a deficit of 8.5 million bags in the 2025/26 crop year, higher than the 5.5 million bag deficit of the previous crop year.

The lack of rain in Brazil is threatening coffee production, particularly in the Minas Gerais region – the country's largest producer of arabica coffee. According to a report from Somar Meteorologia, rainfall in the week ending March 15th was only 71% of the historical average. High temperatures and low rainfall in February are also predicted to negatively impact this year's coffee yield.