AsemconnectVietnam - On Wednesday, Robusta coffee prices in Vietnam's Central Highlands, the country's largest coffee-growing area fell by 400 VND to VND60,100 – 60,700 per kg compared to Yesterday, according to Kinhtedothi.com.

Cư M'gar of Dak Lak provided the maximum price of VND61,100/kg, while traders in Lam Dong province offered the lowest price of VND60,100/kg. Robusta coffee decreased to VND60,100 per kg in Bao Loc, Di Linh, and Lam Ha; to VND 60,600 – VND 60,700 per kg in Dak Lak; to VND60,600 – VND60,700 per kg in Dak Nong; to VND60,300 per kg in Kon Tum, and to VND60,200 - VND60,600 per kg in Gia Lai.
The weather pattern El Nino, expected to develop globally in the second half of the year, poses a larger risk for production of the robusta coffee variety than for milder arabica coffee, analysts and weather experts said.
The weather phenomenon, which disrupts rainfall and temperature patterns, could further tighten supplies and raise prices of robusta, which has a higher caffeine content than arabica and is largely used to make instant coffee.
The world's two largest robusta producing countries, Vietnam and Brazil, could suffer yield losses if a strong El Nino develops, analysts and weather experts said.
Robusta prices have surged this week to a 15-year peak due to tight supply and on worries about future production due to El Nino.
Coffee analyst Fernando Maximiliano, from broker StoneX, said there was a nearly 40% drop in robusta coffee production in Brazil the last time a strong El Nino developed and caused a drought in Brazil's Espirito Santo state between 2015 and 2016.
Maximiliano said that area is better prepared nowadays after investments in reservoirs and irrigation systems, but the crop's potential will all depend on the intensity of expected dry weather caused by El Nino.
It is forecasted that exports in crop year 2023/24 will be at the lowest level in the last 3 crop years, combined with high production costs, Vietnamese coffee prices are likely to continue to remain above the high price range. In the first 5 months of 2023, coffee exports decreased slightly compared to the same period last year.
Following are domestic Robusta coffee prices on May 31, in Vietnam's Central Highlands: