HANOI/BANDAR LAMPUNG, (Indonesia): Vietnamese coffee prices rose this week tracking higher prices in London due to limited stocks, while premiums dropped in Indonesia after trading activities started to increase, traders said on Thursday.
Farmers in the central highlands, Vietnam’s largest coffee-growing area, sold beans at 48,800 dong to 51,000 dong ($2.08 to $2.2) per kilogramme, compared with last week’s 47,700 dong to 48,800 dong range.
“Domestic prices reached highest level in years due to the scarcity of the beans,” a trader based in the coffee belt said. “Farmers are not selling. Growers are turning to other trees such as passion fruit for better profit.”
July robusta coffee gained $84 over the past week, settling at $2,255 as of Wednesday’s close. “The increase in domestic prices was in line with London movement,” another trader based in the area said.
“Only those who were in need of beans seal the contract at the moment as prices are high now.” Traders in Vietnam offered 5% black and broken-grade 2 robusta at a premium range of $40-$50 per tonne to the July contract, up from the $20-$30 premium range last week.
Indonesia’s Sumatran robusta coffee beans were quoted at an $80 premium to the July contract this week, a drop from the $160 premium last week. “Prices fell as trading has started to flourish and terminal prices are rising,” a trader said. Another trader said that for the May-June contract, beans were offered at a $150-$160 premium range, down from last week’s $160-$170 premium.
Indonesia shipped 12,016.6 tonnes of Sumatra robusta coffee beans from Lampung province in February, data from the local trade office showed.
Comments
Comments are closed.