Coffee prices remain stable at a relatively high level.

Today's coffee prices, December 4th, 2024, on the world market, at 4:30 AM, were updated on the Vietnam Commodity Exchange (MXV) (world coffee prices are continuously updated by MXV, matching those of exchanges worldwide; it is the only channel in Vietnam that continuously updates prices linked to exchanges around the world). Today's online coffee prices from the three main futures exchanges, ICE Futures Europe, ICE Futures US, and B3 Brazil, are continuously updated by Y5Cafe throughout the trading hours of the exchanges, as follows:

At the close of trading on the London exchange at 4:30 AM on December 4, 2024, Robusta coffee prices were predominantly in the red and continued to fall sharply, decreasing by 199-208 USD/ton, fluctuating between 4,390-4,772 USD/ton. Specifically, the January 2025 delivery contract was 4,626 USD/ton; the March 2025 delivery contract was 4,604 USD/ton; the May 2025 delivery contract was 4,544 USD/ton; and the July 2025 delivery contract was 4,477 USD/ton.

Similarly, on the morning of December 4, 2024, New York Arabica coffee prices decreased slightly across delivery periods, fluctuating between 280.10 and 300.85 cents/lb. Specifically, the March 2025 delivery contract was 295.50 cents/lb; the May 2025 delivery contract was 293.65 cents/lb; the July 2025 delivery contract was 289.60 cents/lb; and the September 2025 delivery contract was 285.05 cents/lb (down 19.70 cents/lb).

At the close of trading on the morning of December 4, 2024, Brazilian Arabica coffee prices showed mixed increases and decreases across delivery periods, ranging from $359.80 to $372.50 per ton. Specifically, the December 2024 delivery contract was $369.75 per ton; the March 2025 contract was $372.95 per ton; the May 2025 contract was $364.25 per ton; and the July 2025 contract was $358.75 per ton.

Domestic coffee prices, updated at 4:30 AM on December 4, 2024, are as follows: Domestic coffee prices have plummeted sharply, with a record drop of approximately 19,000 – 19,800 VND/kg. Currently, the average purchase price in the Central Highlands provinces is 109,200 VND/kg.

Specifically, the purchase price of coffee in Gia Lai province is 109,000 VND/kg (down 19,000 VND/kg). The purchase price of coffee in Dak Nong province is approximately 109,500 VND/kg (down 19,000 VND/kg).

In Lam Dong province, in districts such as Bao Loc, Di Linh, and Lam Ha, the price of bulk green coffee beans (green coffee beans, fresh coffee beans) is being purchased at 108,000 VND/kg (a decrease of 19,800 VND/kg).

Today's coffee prices (December 4th) in Dak Lak province are as follows: in Cu M'gar district, coffee is being purchased at 109,000 VND/kg, while in Ea H'leo district and Buon Ho town, it is being purchased at 108,900 VND/kg.

Coffee prices tomorrow, December 5, 2024

In just three days of price drops, coffee prices have lost all the gains made during the past month of consecutive increases. Thus, after only three days at the beginning of the week, domestic coffee prices have fallen by 22,000 – 22,500 VND/kg (equivalent to 17%) compared to the peak of 129,500 – 130,500 VND/kg reached at the end of last week.

According to experts, the sharp drop in coffee prices is believed to be due to the weakening Brazilian real, which has prompted speculators to sell off, and a wave of selling has now occurred in Vietnam following the first signs of a price decline on the ICE futures exchange.

According to Mr. Nguyen Quang Binh, a coffee market research expert, the surge in Arabica coffee prices to their highest level in 50 years has prompted investors to aggressively take profits, putting downward pressure on both exchanges. In addition, the strengthening US dollar has also led Brazilian farmers to increase coffee sales to earn foreign currency, pushing coffee prices even lower.

Furthermore, the current increase in margin requirements for trading on the two coffee exchanges puts traders (whether speculating or hedging) at a disadvantage because they have to deposit a large sum, limiting their participation. This is also one of the reasons for the rapid fluctuations in coffee prices recently. Moreover, the increased margin also forces those holding long or short positions to reduce the number of contracts traded. When speculative funds on both exchanges are heavily burdened with long contracts, the increased margin forces them to sell off some contracts to retain fewer if they still want to maintain their long positions. The exchange with the most long contracts is at risk of heavy selling, further driving down prices.

It is predicted that coffee prices will continue to fall slightly, but will still remain at the level of 100,000 – 110,000 VND/kg. This is because the market continues to worry about coffee supply in major producing countries such as Brazil and Vietnam due to unfavorable weather conditions.

Source: https://congthuong.vn/du-bao-gia-ca-phe-ngay-mai-5122024-gia-ca-phe-on-dinh-o-muc-kha-cao-362485.html