Coffee price today December 21, 2024: Plunging, why?
Today, December 21, domestic coffee prices are at 121,500 - 122,000 VND/kg. Coffee prices suddenly plummeted for the third consecutive day. The world market cooled down before the holiday.
Domestic coffee prices today
Specifically, today's coffee price in Dak Lak decreased by 1,800 VND/kg compared to yesterday, reaching 122,000 VND/kg.
Coffee price today in Lam Dong 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 today in Dak Nong are still at the highest level, down 2,000 VND/kg compared to yesterday, reaching 122,000 VND/kg.
The US dollar index (DXY00) rose to a two-year high on December 19, putting negative pressure on prices of many commodities, including coffee.
According to Reuters, the price of robusta coffee – the main coffee variety of Vietnam – has fallen to its lowest level in the past 1.5 weeks. The main reason is that the market's attention is focused on the harvest in Vietnam, the world's largest producer of robusta coffee.
Coffee trading in Vietnam has been quiet this week as the market enters the Christmas season. Traders say the main reason is a drop in coffee supply due to adverse weather, which has disrupted harvests in major coffee growing regions.
World coffee prices today
At the end of the most recent trading session, the price of Robusta coffee in London for January 2025 delivery increased by 39 USD/ton compared to yesterday, at 5,100 USD/ton, and for March 2025 delivery increased by 32 USD/ton compared to yesterday, at 5,078 USD/ton.
Arabica coffee price for March 2025 delivery increased by 4.75 cents/lb compared to yesterday, at 328.50 cents/lb, and decreased by May 2025, up by 4.95 cents/lb compared to yesterday, at 323.25 cents/lb.
According to the latest report from the US Department of Agriculture (USDA), global coffee output 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 the increased production, the USDA warned that ending stocks in the 2024-25 crop year will be sharply reduced. Global stocks are expected to fall to 20.9 million bags, a 24-year low, down 6.6% from 22.3 million bags in the 2023-24 crop year. This could put pressure on supplies in subsequent crop years.
In the US market, consumers are expected to consume about 1.5 million tons of coffee in 2024-2025, affirming its position as one of the largest markets in the world.