Coffee prices reverse and recover after a series of declines

At the close of yesterday's trading session, Arabica coffee prices rose 2.8% to nearly $6,700 per ton, while Robusta coffee prices increased by more than 3% to $4,770 per ton.

The Vietnam Commodity Exchange (MXV) reported that the global raw materials market saw mixed performance yesterday (December 4th). At closing, the MXV-Index remained virtually unchanged at 2,178 points. Coffee continued to attract attention in the industrial raw materials market, rebounding by 3% after three consecutive days of decline. Conversely, in the energy market, following unfavorable news regarding the US economy , crude oil prices weakened across the board.

Thị trường hàng hóa hôm nay 5/12: Giá cà phê đảo chiều hồi phục sau chuỗi sụt giảm

MXV-Index

Coffee prices reversed course and recovered after a series of declines.

At the close of yesterday's trading session, the industrial raw materials price chart showed clear divergence. Coffee, in particular, stood out with gains, both rising after three consecutive days of declines. Specifically, Arabica coffee prices increased by 2.8% to nearly $6,700 per ton, while Robusta coffee prices rose by over 3% to $4,770 per ton. This upward trend was supported by concerns about supply in major producing countries.

Industrial raw material price list

In Brazil, consistently below-historical rainfall since April in the main coffee-producing region continues to fuel market concerns about coffee production in the world's largest coffee exporter. Somar Meteorologia reports that rainfall in Minas Gerais, Brazil's largest Arabica coffee-producing state, was 17.8 mm last week, equivalent to 31% of the historical average.

Previously, in its global market report, the consulting firm Hedgepoint predicted Brazil's coffee production for the 2025-2026 crop year to be around 65.2 million bags. Of this, Arabica coffee production was projected at 42.6 million 60kg bags, a slight decrease of 1.4% compared to the previous season due to unfavorable weather conditions.

In Vietnam, ongoing rain in some areas of the Central Highlands is disrupting coffee harvesting. This concern is prompting investors to enter the derivatives market with strong buying pressure. This is especially true as La Nina is forecast to be active during the main harvesting season, potentially causing heavy rains in Vietnam's key coffee-growing regions. Adverse weather not only affects harvesting but also disrupts the logistics chain, leading to the possibility of lower and slower-than-usual supply of new crop coffee from Vietnam to international markets.

In the domestic market, coffee prices in the Central Highlands and Southeast regions this morning (December 5th) were recorded at 108,000 - 109,500 VND/kg, an increase of 2,500 - 3,000 VND/kg compared to December 4th. However, compared to the same period last year, coffee prices have now doubled.

Early yesterday morning (December 4th, Vietnam time), European Union (EU) negotiators rejected a proposal to ease the EU's anti-deforestation regulations (EUDR), agreeing instead to postpone their implementation for another year. This decision contradicts a proposal by EU parliamentarians last month to create additional "non-risk" categories for certain countries, which would significantly reduce inspection requirements.

World crude oil prices cool down.

According to MXV, crude oil prices reversed sharply lower at the close of yesterday's trading session after the market reacted to unfavorable US economic data.

Energy price list

At closing, WTI crude oil prices fell 2% to $68.54 per barrel. Brent crude oil prices dropped 1.47% to $72.54 per barrel.

The Institute for Supply Management (ISM) reported that the US non-manufacturing Purchasing Managers' Index (PMI) for November reached 52.1 points, down from 56 points in October and lower than analysts' predictions of 55.5 points. In addition, the ADP jobs report showed the US economy added 146,000 non- farm jobs in November, significantly lower than the market's expected increase of 166,000. Meanwhile, the number of new non-farm jobs in October was also revised down to 184,000, from the previously announced 233,000. These reports paint a somewhat gloomy picture of the US economy in November and have had a strong bearish impact on crude oil prices.

The weekly Oil and Gas Report from the U.S. Energy Information Administration (EIA) revealed mixed data on crude oil and gasoline inventories. Specifically, U.S. commercial crude oil inventories for the week ending November 29th reached 423.4 million barrels, a sharp decrease of 5.07 million barrels from the previous week and far exceeding analysts' forecasts of a 1.6 million barrel decrease. Conversely, gasoline inventories, a key indicator of energy demand, increased by 2.36 million barrels during the reporting week, marking the third consecutive week of increases. This contrasting trend is raising concerns about a potential weakening in short-term U.S. oil demand.

Prices of some other goods