Coffee price today December 3, 2024: Sharp decline both domestically and internationally
Today, December 3, domestic coffee prices are at 127,800 - 128,500 VND/kg. Compared to yesterday, coffee prices have dropped sharply from 1,700 to 2,000 VND/kg. World coffee prices suddenly dropped sharply, mainly due to speculative profit-taking activities.
Domestic coffee prices today
Specifically, today's coffee price in Dak Lak decreased by 2,000 VND/kg compared to yesterday, reaching 128,000 VND/kg.
Coffee price today in Lam Dong also decreased by 1,700 VND/kg compared to yesterday, reaching 127,800 VND/kg.
Similarly, today's coffee price in Gia Lai decreased by 2,000 VND/kg compared to yesterday, reaching 128,000 VND/kg.
Coffee prices today in Dak Nong remain at their highest level, down 2,000 VND/kg compared to yesterday, reaching 128,500 VND/kg.
Dak Lak accounts for 30% of the country's coffee growing area and 33% of the Central Highlands region, affirming its key position in the coffee industry.
Currently, Dak Lak – the coffee capital of Vietnam – is in the harvest season. According to statistics from the agricultural sector, the province has a coffee growing area of up to 212,000 hectares, with an estimated output of about 354,000 tons.
Although coffee prices are rising sharply, this crop year is in a state of "bad harvest, good price". Statistics from the Standing Office of the Provincial Steering Committee for Natural Disaster Prevention, Control and Search and Rescue show that more than 18,700 hectares of coffee in Dak Lak were damaged, of which more than 1,000 hectares were completely lost.
According to Mr. Nguyen Hoai Duong, Director of the Department of Agriculture and Rural Development of Dak Lak, the main cause of this situation is climate change, the El Nino phenomenon causing drought, along with military conflicts in the world increasing export and transportation costs.
Despite difficulties due to crop failure, Dak Lak's coffee export turnover still reached 915 million USD, an increase of 168 million USD compared to the previous crop, accounting for 17% of the country's total coffee export turnover.
However, according to the Department of Industry and Trade of Dak Lak, the main export product is still green coffee (raw form), while the proportion of deeply processed coffee has increased but is still very low compared to the total export value of the whole province.
World coffee prices today
At the end of the most recent trading session, the price of Robusta coffee in London for November 2024 delivery decreased by 381 USD/ton compared to yesterday, at 5,028 USD/ton, and for January 2025 delivery decreased by 379 USD/ton compared to yesterday, at 4,998 USD/ton.
Arabica coffee price for December 2024 delivery decreased by 15.15 cents/lb compared to yesterday, at 302.90 cents/lb, and for March 2025 delivery decreased by 14.55 cents/lb compared to yesterday, at 300.95 cents/lb.
European press commented that speculation in the world raw material market is one of the main factors causing raw coffee prices to reach their highest level in nearly 30 years.
Despite the anti-deforestation regulations being delayed for a year, coffee prices continue to rise to record levels without any new reason appearing.
Germany’s Bild newspaper also agrees that speculation is the biggest factor. In the article “Coffee at 27-year high, more expensive,” the newspaper points out that the liquidity in the coffee futures market is lower than that of other commodities such as gold or copper.
This means that even small changes from investment funds or large traders can create strong price fluctuations. These developments make coffee prices not only increase but also become more unpredictable on the international market.
