HANOI/BANDAR LAMPUNG: Vietnam’s domestic coffee prices fell due to global cues and new harvest supplies, while premiums in Indonesia edged up further on tightening supplies, traders said on Thursday.
Farmers in the Central Highlands, Vietnam’s largest coffee-growing area, sold beans at 38,900 dong-40,100 dong ($1.57-$1.62) per kilogram, down from last week’s 39,700 dong-41,300 dong range.
Traders in Vietnam offered 5% black and broken-grade 2 robusta at a discount range of $60-$70 per tonne to the March contract, unchanged from last week.
“Beans have started to come but not many as they are undergoing drying process,” said a trader based in the coffee belt. “Buyers and sellers now cannot agree on the prices. While sellers asked for $60-$70 discount, buyers quoted a discount of $100,” the trader added. January robusta futures on ICE settled down $12, or 1% on Wednesday, at $1,780, the lowest level since late-August 2021, according to Refinitiv Eikon data.
Indonesia’s Sumatran robusta coffee beans were offered at a premium of $50 per tonne to the January contract this week, up from the $40 premium last week, one trader said, as coffee supplies dwindled. Another trader said there was a huge gap between prices offered by local and foreign exporters.
“Foreign exporters offered $110 premium to January, February, and March contracts while local ones quoted $230 premium to the January and February contracts, up from the $210 premium last week to the December and January contracts,” the trader said.
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