HANOI/BANDAR LAMPUNG: Trading in Vietnam has resumed after a week-long Lunar New Year break but supplies were thin as farmers were reluctant to release beans on high discounts offered by buyers.
Farmers in the Central Highlands, Vietnam’s largest coffee-growing area, sold beans at 41,900 dong to 43,700 dong ($1.79-$1.86) per kilogramme, up from last week’s 38,900 dong to 41,100 dong range.
One trader in Vietnam offered 5% black and broken-grade 2 robusta at a discount range of $150-$180 per tonne to the May contract, compared with the $90 discount a week ago. Another trader offered a $200 discount to the same contract.
“High discounts discouraged many to release beans,” said a trader based in the coffee belt. “Low supply at the time Vietnam being the world’s main robusta supplier has triggered a concern over short-term shortage.”
May robusta futures on ICE gained $98 over the past week, settling at $2,042 per tonne as of Wednesday’s close. Vietnam exported 160,000 tonnes of coffee in January, down 30.9% from a year earlier, government data showed. Coffee export revenue in the month fell 29.8% to $352 million.
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