Follow more coffee price situation yesterday
The world coffee market is in turmoil with skyrocketing growth, but in Vietnam, domestic coffee prices are going in a completely different direction. What is the reason behind this incredible contrast?
International coffee prices today August 5, 2025
Robusta Coffee Price London August 5, 2025
The London Robusta coffee market recorded a simultaneous increase in all major trading terms. The 09/2025 futures contract increased by 117 USD, reaching 3,447 USD/ton.
The following terms also recorded a sharp increase, fluctuating between 63 - 96 USD/ton. Specifically, the term 11/2025 increased by 96 USD, reaching 3,355 USD/ton. The term 01/2026 increased by 88 USD, reaching 3,304 USD/ton. The term 03/2026 increased by 82 USD, reaching 3,262 USD/ton; and the term 05/2026 increased by 63 USD, reaching 3,214 USD/ton.
New York Arabica Coffee Price August 5, 2025
Similarly, the price of Arabica coffee on the New York floor on August 5, 2025 recorded a simultaneous increase in all trading terms. The nearest term in September 2025 increased by 8.75 cents, reaching 292.95 cents/lb.
The following maturities such as December 2025 and March 2026 also increased by 8.25 cents and 7.70 cents, respectively, to reach 285.80 cents and 278.70 cents, respectively. The further maturities such as May 2026 and July 2026 also recorded increases of 7.60 cents and 7.15 cents, respectively, to reach 273.50 cents and 268.00 cents, respectively.
The strong price increase on both Robusta and Arabica exchanges took place in the context of market concerns about the global supply and demand situation, especially after the US decision to impose a 50% tax on some Brazilian products, effective from August 6.
Brazil is the world's largest producer and exporter of coffee, and the United States is the largest consumer of coffee. The tariffs are seen as a political move, aimed at putting pressure on the Brazilian government, and have caused major disruptions in the global supply chain.
Brazilian coffee traders and exporters are scrambling to find alternative markets for the roughly 8 million bags of coffee they sell to the United States each year, a move that is expected to raise logistics costs and create more competition in other markets such as China and the European Union.
Domestic coffee prices today August 5, 2025
Contrary to the upward trend in the world market, domestic coffee prices on August 5, 2025 started the week with a slight decrease across the board. The price of green coffee beans is currently fluctuating around 98,700 - 99,000 VND/kg.
Specifically:
Coffee prices in Dak Lak and Dak Nong (now Lam Dong) both decreased by VND500, bringing the average price down to VND99,000/kg.
Similarly, coffee prices in Lam Dong also decreased by 500 VND, closing at 98,700 VND/kg.
Notably, coffee prices in Gia Lai had the deepest decrease among the localities, down 600 VND to 98,800 VND/kg.
| Market | Average (đ) | Change (đ) |
|---|---|---|
| Dak Lak | 99,000 | -500 |
| Lam Dong | 98,700 | -500 |
| Gia Lai | 98,800 | -600 |
| Dak Nong | 99,000 | -500 |
The slight decrease in domestic coffee prices, contrary to the increase in world prices, is not a surprise. This is a characteristic of the Vietnamese coffee market in recent times, when domestic prices have remained higher than international prices for a long time.
According to Mr. Do Ha Nam, Vice President of VICOFA, the main reason for this situation is the hoarding mentality of farmers and agents. When the price is expected to increase, they do not want to sell. Therefore, the supply of coffee in the domestic market becomes scarce. Exporters who need goods to meet old contracts are forced to raise prices to buy, but in very small quantities.
This creates a paradox: no matter how the world price fluctuates, the domestic coffee price remains high due to internal supply and demand. Today's slight decrease may be a small adjustment of the market after a series of days of prices remaining at the peak, but does not reflect a major change in market sentiment.
However, it is worth noting that Vietnam has received positive news from the US. The Ministry of Industry and Trade said that the US has reduced the reciprocal tax rate for Vietnam from 46% to 20%, creating more favorable conditions for Vietnamese coffee when exporting to this market. This could help Vietnam increase coffee exports to the US in the future, filling the gap left by Brazil.
Forecast and outlook for coffee in the future
The imposition of US tariffs on Brazilian coffee may create a short-term shock to the global coffee market, but in the long term, trade routes will be reshaped. Exporters will look to divert to other markets or use intermediary countries to avoid tariffs. This may increase logistics costs, but also open up opportunities for other exporting countries such as Vietnam.
With farmers and dealers continuing to hoard their goods, the possibility of domestic coffee prices remaining high is very high. However, if world prices continue to fluctuate negatively, along with pressure from signed export contracts, domestic prices may be under greater downward pressure.
The US tax reduction for Vietnam is a very positive signal. In the context of the disruption of the global coffee supply chain, this is a golden opportunity for Vietnam to strengthen its position in the US market, which is a huge coffee consuming market. This will help consolidate the export turnover and position of Vietnamese coffee on the world coffee map.
Source: https://baodanang.vn/gia-ca-phe-hom-nay-5-8-2025-dot-ngot-quay-xe-len-dinh-boi-tac-dong-tu-thue-my-3298653.html
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