HANOI/BANDAR LAMPUNG: Domestic coffee prices in Vietnam inched up this week on global cues, weaker local currencies and tightened beans supplies, traders said on Thursday, while the market was stable in Indonesia.
Farmers in the Central Highlands, Vietnam’s largest coffee-growing area, sold coffee at 45,000-47,300 dong ($1.92-$2.02) per kilogram, up from last week’s 44,500-46,000 dong range.
“I reckon domestic prices may climb to 48,000 dong per kg next week,” said an exporter based in Ho Chi Minh City. “Higher London prices, weaker dong and beans scarcity have pushed (up) domestic prices. We are struggling to buy beans for the past months,” the exporter added. Traders said farmers may continue to hold off their remaining beans for better prices.
London November robusta coffee settled up $49, or 2%, at $2,149 per tonne on Wednesday, the highest level since April this year, Refinitiv Eikon data showed. Traders in Vietnam quoted 5% black and broken-grade 2 robusta at the same level as the London prices.
Some quoted a $20 premium per tonne to the November contract. Vietnam’s coffee exports in July were down 17.1% from June at 113,852 tonnes, government customs data showed. For the first seven months of 2022, Vietnam exported 1.13 million tonnes of coffee, up 17.3% from a year earlier.
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