Asia coffee: Domestic prices hit 1-year low in Vietnam on tepid trade, global cues

HANOI: Vietnam’s domestic coffee prices fell to their lowest since May 2023 on Thursday, pressured by a drop in global prices, rising robusta supplies from other producers, and a complicated global outlook, traders said.

Farmers in the Central Highlands, Vietnam’s largest coffee-growing region, sold beans at 103,000-103,500 dong ($3.94-$3.96) per kg, falling sharply from last week’s 111,500-112,000 dong range and hitting the lowest level since May last year.

LIFFE robusta coffee lost $264, or 6%, to $3,891 a ton on Wednesday, also a one-year low level, according to data compiled by LSEG. “Trade is very lacklustre now as many are anticipating prices would fall further,” a trader based in the coffee belt said. “Given the rising global tension, everyone is trading with cautious manner.” Another trader based in the same region said the weather was favourable for the trees at the moment with sufficient rain.

“Upcoming crop will very likely be a good one,” the second trader said. Traders offered 5% black and broken-grade 2 robusta in the range of $109-$129 per ton premium to the September LIFFE contract.

In Indonesia, Sumatra coffee beans were offered at $235 premium this week to the September contract, compared with $145 premium a week ago to the July-August contract, “as an adjustment to the London terminal”, a trader said. Another trader quoted $150 premium to the September contract, up from $100 premium a week ago.