HANOI: Vietnam’s domestic coffee prices fell this week, tracking a drop in the London market, while premiums rose in Indonesia on limited bean supplies, traders said on Thursday.
Farmers in the central highlands, Vietnam’s largest coffee-growing area, sold beans at 64,700 dong to 65,300 dong ($2.73 to $2.75) per kg, down from 65,400 dong to 66,900 dong range a week ago. September robusta coffee shed $104 in a week, settling at $2,512, as of Wednesday’s close.
“Some are shifting to November and January contracts for lower prices, and are waiting for supplies from Brazil,” said a trader based in the coffee belt.
“Supportive news on Brazilian robusta have helped ease the prices.”
Coffee exports from Vietnam are estimated to have decreased 2.2% in the first half of 2023 from a year earlier to 1.02 million tonnes, the equivalent of 17 million 60-kg (130-pound) bags, official data showed. Coffee export revenue for Vietnam rose 3% to $2.4 billion in the January-June period.
In Indonesia, Sumatran robusta coffee beans were offered at $400 to $500 premium this week to the September contract week. The premium was $350 two weeks ago.
“Today’s price rose between 50-150 points due to the smaller amount of beans,” a trader said, adding trade was quiet. The price for August contract was at $365 to $375 premium, compared with $375 premium two weeks ago, another trader said.
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