Coffee prices today December 5: Domestic prices continue to fall sharply

World coffee prices

Early morning of December 5 (Vietnam time), on the London floor, the price of Robusta coffee futures for delivery in January 2025 was 4,770 USD/ton, up 144 USD/ton); the price of delivery in March 2025 was 4,751 USD/ton, up 147 USD/ton.

The price of Arabica coffee on the New York floor for delivery in March 2025 is 303.70 cents/lb; the price of delivery in May 2025 is 301.75 cents/lb.

Domestic coffee prices

Domestic coffee prices today fluctuated at 107,000 - 108,500 VND/kg, a sharp decrease of 3,500 to 4,000 VND/kg compared to yesterday.

Specifically, today's coffee price in Dak Lak decreased by 4,000 VND/kg compared to yesterday, reaching 108,000 VND/kg.

Coffee prices today in Lam Dong also decreased by 4,000 VND/kg compared to yesterday, reaching 107,000 VND/kg.

Similarly, today's coffee price in Gia Lai decreased by 4,000 VND/kg, reaching 108,000 VND/kg.

Domestic coffee prices fell sharply today. (Illustration photo).

Coffee price today in Dak Nong decreased by 3,500 VND/kg compared to yesterday, reaching 108,500 VND/kg.

In Vietnam, in just the first three days of the week, coffee prices have fallen by VND22,000 - 22,500/kg (equivalent to 17%) compared to the peak of VND129,500 - 130,500/kg reached at the end of last week. There has been a wave of selling in Vietnam right after the first signs of a price decline on the ICE futures exchange.

According to experts, the rise in Arabica coffee prices to their highest level in the past 50 years has stimulated investors to take profits strongly, putting downward pressure on both exchanges. In addition, the strong US dollar has also prompted Brazilian farmers to increase coffee sales to earn foreign currency, pushing coffee prices down.

In addition, the current increase in the deposit required to be allowed to trade on the two coffee exchanges has put those who trade on the exchanges (whether for speculative purposes or to protect prices) at a disadvantage because they have to pay a very large amount of money, limiting their ability to participate. This is also one of the reasons why coffee prices have increased and decreased rapidly in recent times.

Furthermore, increasing margin also forces those holding long and short positions to reduce the number of contracts traded. When hedge funds on both exchanges are still carrying too many contracts, increasing margin forces them to sell some of them to keep a few contracts if they want to keep their long positions. The exchange with the most contracts remaining is at risk of being sold off more, causing prices to fall further.

Ngoc Vy

Source: https://vtcnews.vn/gia-ca-phe-hom-nay-5-12-trong-nuoc-tiep-tuc-giam-manh-ar911520.html