HANOI: Vietnamese coffee prices picked up on a rebound in London prices, while Indonesian premiums rose ahead of main harvest which may begin in May, traders said on Thursday.
Farmers in the Central Highlands, Vietnam’s coffee-growing capital, sold coffee at 32,100-32,800 dong ($1.39-$1.42) per kg, up from 31,800-32,300 dong last week.
May robusta coffee settled up $10, or %1, at $1,410 on Wednesday.
“There was not much trading in the market,” said a trader based in the coffee belt. “Prices rebounded this week but were still under farmer’s expectation.”
Traders in Vietnam offered 5% black and broken grade 2 robusta at premiums of $50-$60 to the May contract, up from $40-$50 premiums a week ago.
Vietnam’s coffee exports in February were down 23.5% from January at 122,833 tonnes. For the first two months of 2021, Vietnam exported 283,339 tonnes of coffee, down 14.7% from a year earlier, official data showed.
In Indonesia’s Lampung province, robusta beans were offered with premiums of $230 to $240 to the April contract, increasing $10 from last week. While for the May contract, the premium increased to $250 from last week’s $200.
Traders said increasing premium to the April and May contracts was due to the rise in terminal price. Main harvest is expected in May or June.