Vietnam coffee prices fall as arabica hits 10-week low
Coffee prices in Vietnam and on global exchanges fell again on Sept. 18, extending a two-day slide that has pushed domestic buying rates further from 95,000 dong a kilogram and dragged arabica to its weakest level in about 10 weeks.
That matters because coffee is a globally traded soft commodity whose price swings feed straight into producer incomes, roaster margins and inflation expectations. A softer market eases cost pressure for buyers such as roasters and retailers, but it also erodes cash flow for growers and exporters, especially in Vietnam, the world’s biggest robusta producer and a key supplier to instant coffee chains.
In Vietnam’s Central Highlands, farmgate prices fell 300 to 500 dong/kg to 93,500-94,400 dong/kg, with Lam Dong dropping the most to 93,500 dong/kg. Dak Nong held the highest quote at 94,400 dong/kg, while Dak Lak and Gia Lai were both at 94,200 dong/kg. The market has now fallen for a second straight session, losing more than 1,000 dong/kg in two days as it moves away from the 95,000 dong/kg threshold that traders had been watching.
The decline tracked losses on both major international benchmarks. In London, robusta for November delivery fell 1.47% to $3,430 a tonne, while the January 2027 contract slipped to $3,402 a tonne, near the psychologically important $3,400 level. In New York, arabica for December delivery fell 0.74% to 281.55 cents a pound, and the March 2027 contract dropped to 273.35 cents. Reuters and Barchart said arabica futures on ICE had fallen to around a 10-week low, underscoring the market’s recent weakness.
The immediate implication is mixed for the coffee industry. Buyers and importers may welcome lower green bean costs after a period of elevated prices, but growers face tighter margins just as they rely on strong export receipts to cover financing, labor and fertilizer costs. The move also complicates pricing for roasters that had been working through earlier spikes, as it may take time for cheaper futures to filter into retail contracts and shelf prices.
For investors, the move reinforces the broader softness in agricultural commodities and keeps attention on whether this is a brief correction or the start of a more durable downtrend. Supply conditions, warehouse inventories and weather remain the key swing factors, while any rebound in the dollar or renewed crop concerns could quickly reverse the selloff. For now, the direction of travel is lower — and the pressure is increasingly shifting from consumers to producers.
| Entity | Gains | Losses |
|---|---|---|
| Roasters and importers | ▲Lower input costs | ▼Less pricing power on inventory bought high |
| Vietnamese coffee growers | ▲— | ▼Softer farmgate prices |
| Consumers | ▲Potentially cheaper coffee later | ▼— |
| Traders/shorts | ▲Momentum from falling futures | ▼Rebound risk if supply tightens |