Asia coffee: Supplies build up in Vietnam, Indonesia muted on holidays

HANOI: New coffee beans from the current harvest have started to build up in Vietnam, while the market in Indonesia was muted this week ahead of the Christmas and New Year holidays, traders said on Thursday.

In the Central Highlands, farmers sold beans at 95,200 dong to 97,000 dong (USD3.62-USD3.69) per kg, up from 88,700 dong to 90,000 dong a week earlier. Robusta coffee for March delivery gained USD189 from the beginning of this week to USD3,858 per ton by Wednesday’s close.

“More beans are coming, and the market has turned upbeat in recent days,” said a trader based in the coffee belt. “It’s now much easier to align prices between buyers and sellers.” Another trader said this is the right time to buy beans as supplies are abundant before farmers start hoarding when stocks start to deplete.

“Vietnam will remain the sole supplier of robusta until Indonesia’s mini-harvest begins in April next year. Prices are expected to rise once farmers stop releasing beans in bulk,” the second trader said. Traders offered 5percent black and broken-grade 2 robusta at a discount of USD60 per ton to the March LIFFE contract.