Coffee price today December 4, 2024: Shocking decrease, risk of coffee price bubble bursting
Today's domestic coffee price, December 4, is at 111,000 - 112,000 VND/kg. Compared to yesterday, coffee has dropped dramatically from 16,000 to 16,800 VND/kg. World coffee prices have suddenly dropped sharply like never before.
Domestic coffee prices today
Specifically, today's coffee price in Dak Lak decreased by 16,000 VND/kg compared to yesterday, reaching 112,000 VND/kg.
Coffee price today in Lam Dong also decreased by 16,800 VND/kg compared to yesterday, reaching 111,000 VND/kg.
Similarly, today's coffee price in Gia Lai decreased by 16,000 VND/kg compared to yesterday, reaching 112,000 VND/kg.
Coffee prices today in Dak Nong are still at the highest level, down 16,500 VND/kg compared to yesterday, reaching 112,000 VND/kg.
Although it was predicted that coffee prices would adjust after a series of strong increases, the decrease of nearly 600 USD/ton (equivalent to nearly 11%) in just one trading session in early December was a big surprise.
This shocking drop has raised concerns about the risk of a coffee price bubble bursting, especially when the market has just experienced a strong price increase in a short period of time.
After a week of price increases that excited coffee farmers, coffee prices have fallen sharply, even surpassing last week’s increase. This is a level of volatility not recorded in more than a year.
According to experts, this abnormality is partly due to the influence of the European Union Deforestation Regulation (EUDR), which is expected to have a final decision in the near future, creating instability in the market.
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 94 USD/ton compared to yesterday, at 4,740 USD/ton, and for January 2025 delivery decreased by 84 USD/ton compared to yesterday, at 4,722 USD/ton.
Arabica coffee prices for December 2024 delivery increased by 2.85 cents/lb compared to yesterday, at 298.90 cents/lb, and for March 2025 delivery increased by 3.10 cents/lb compared to yesterday, at 297.35 cents/lb.
At the end of the trading session on December 3, world coffee prices fell sharply. The main reason came from profit-taking liquidation activities when technical trading signals showed that the market had fallen into overbought territory.
Forecasts for the 2024/25 crop year suggest a global coffee market shortfall of around 2 million bags. Production in Brazil – the world’s largest producer – is expected to decline by 1.4% to 65.2 million bags in 2025/26 due to prolonged dry weather.
The situation is exacerbated by adverse weather conditions in other arabica-producing countries, such as Colombia, Costa Rica and Honduras. Colombia in particular is recovering from an El Niño drought, while heavy rains threaten to damage crops in Costa Rica and Honduras.
