Domestic coffee prices fell by nearly 4,000 VND at the end of the week, the market was "paralyzed" by high prices; Vietnamese goods experienced outstanding growth.

According to preliminary statistics from the General Department of Customs, in January 2025, China spent nearly US$14 million (approximately VND 357 billion) to purchase 3,773 tons of coffee from Vietnam. Accordingly, the Chinese market accounted for 4.8% of Vietnam's total coffee exports in January.

Coffee prices today, March 8, 2025

World coffee prices fell sharply at the end of the week, amid a near paralysis of global coffee trade due to high prices. Speculators on the exchange liquidated their long positions.

Domestic coffee prices have been continuously falling. In a single day, the purchase price dropped by nearly 4,000 VND/kg, currently trading at 129,500 - 130,500 VND/kg.

Robusta coffee prices fell for the third consecutive session, dropping below $5,353 per ton and arabica to 384.4 US cents per pound. Prices continued to decline due to favorable weather forecasts in Vietnam and Brazil, two of the world's leading coffee producers.

Coffee prices fell sharply as forecasts of rain in Brazil triggered a wave of liquidations of coffee futures contracts. Reuters reported that traders said rain is likely to return to Brazil's coffee-growing regions next week, although recent hot and dry weather conditions have driven prices higher, with soil moisture remaining a concern. According to the Brazilian Meteorological Agency Somar Meteorologia, the dry and hot weather in Brazil for the remainder of this week will give way to several rainy days next week, easing the drought.

In addition, the prospect of rain in Vietnam is also putting pressure on coffee prices, with forecasts indicating the possibility of daily rain next week in the Central Highlands, Vietnam's largest coffee-growing region.

However, with prices so high compared to the market, global coffee traders and roasters say they have cut purchases to a minimum as the industry reels from the sharp price surge. Meanwhile, suppliers have yet to convince retailers to accept higher prices, according to Reuters. The high coffee prices are making roasters more cautious about purchasing. Some businesses warn that if prices remain high in the coming period, a wave of mergers and acquisitions will occur.

A recent Reuters survey predicts that arabica coffee prices could fall 30% by the end of this year, due to high prices dampening demand and early signs of a bumper crop in Brazil next year. However, until prices fall significantly, the coffee industry will still face many challenges. The CEO of a major roaster in the U.S. – the world's largest coffee consumer market – said some of his customers are unsure whether they can continue in business.

Meanwhile, Michael Von Luehrte, owner of brokerage firm MVLcoffee, said the coffee market, particularly in the trading sector, is likely to see a wave of mergers and acquisitions. Companies with larger capital will likely be able to increase trading volume, while others will struggle due to shrinking financial resources, he added.

Investors fled many financial markets in a wait-and-see attitude, awaiting clearer information on trade policies following the dramatic shifts in the Trump administration's recent tariffs on Mexico and Canada.

President Donald Trump announced that all goods and services from Mexico that comply with the USMCA will have their recent 25% tariffs on Mexican imports extended by one month. The announcement came a day after the White House extended the deadline by one month for US automakers to comply with the USMCA.

Domestic coffee prices today, March 7th, dropped sharply by 3,500 VND/kg in some key purchasing areas. (Source: Freepik)

According to World & Vietnam , at the close of trading on March 7th, robusta coffee prices on the ICE Futures Europe London exchange for the May 2025 delivery contract continued to fall by $74, trading at $5,353 per ton. The July 2025 delivery contract fell by $68, trading at $5,318 per ton. Trading volume was very low.

Arabica coffee prices on the ICE Futures US New York exchange fell 2.75 cents for the May 2025 contract, trading at 384.40 cents/lb. Meanwhile, the July 2025 contract decreased by 0.15 cents, trading at 377.40 cents/lb. Trading volume was high.

Domestic coffee prices today, March 7th, fell sharply by 3,500 VND/kg in some key purchasing areas. Unit: VND/kg

Average price	Medium
USD/VND exchange rate	25,290	+ 50
DAK LAK	130,500	- 3,500
LAM DONG	129,500	- 3,500
GIA LAI	130,300	- 3,500
DAK NONG	130,500	- 3,500

(Source: giacaphe.com)

According to preliminary statistics from the General Department of Customs, in January, China spent nearly $14 million (approximately VND 357 billion) to purchase 3,773 tons of coffee from Vietnam. Accordingly, the Chinese market accounted for 4.8% of Vietnam's total coffee exports in January.

In 2024, this populous nation increased its imports of coffee from Vietnam at exorbitant prices.

Statistics from Chinese customs show that the country imported 190,900 tons of coffee from 58 countries and territories worldwide, valued at $972.6 million, an increase of 24% in volume and 21.5% in value compared to 2023.

Notably, in the past year, China's average import price of coffee from the world reached US$5,095 per ton, a decrease of 2.1% compared to 2023. Within this, the average import price of coffee from Colombia and Ethiopia decreased significantly. Conversely, China's average import price of coffee from Vietnam increased sharply by 62.7% compared to 2023, reaching US$4,176 per ton.

Accordingly, China spent nearly $101 million to import 24,100 tons of coffee from Vietnam. Compared to the same period in 2023, the amount of coffee imported from Vietnam increased by 65.8% and the value surged by a dramatic 169.8%.

Thanks to this, Vietnam's coffee market share in China surged from 9.44% in 2023 to 12.62% in 2024, simultaneously propelling Vietnam past Ethiopia to become the third largest supplier to the billion-person market, behind only Brazil and Colombia.

Experts believe that in recent years, China has emerged as a new coffee consumer market, with import volumes trending upwards year after year.

With its remarkable growth in coffee consumption, China is becoming a potential partner for Vietnamese coffee. Therefore, businesses can leverage geographical proximity and close partnerships to boost coffee exports to this billion-person market this year.

Source: https://baoquocte.vn/gia-ca-phe-hom-nay-832025-gia-ca-phe-trong-nuoc-mat-gan-4000-dong-phien-cuoi-tuan-thi-truong-te-liet-vi-gia-cao-hang-viet-tang-truong-vuot-bac-tai-tru-306767.html