HANOI: Discounts for Vietnamese coffee extended this week due to high global prices as well as scarce supplies as farmers sold most of their stocks, while premiums narrowed in Indonesia as supplies started to come in, traders said on Thursday.
Farmers in Vietnam’s central highlands, the country’s largest coffee-growing area, sold beans at 50,500 dong to 52,200 dong ($2.15-$2.22) per kilogramme, up from 50,300 dong to 52,000 dong a week ago.
Traders in Vietnam offered 5% black and broken-grade 2 robusta at a discount of $120-$130 per tonne to the July contract, compared with last week’s discount of $30-$50. “London prices keep rising. It hit a 12-year high on Monday due to scarce supplies,” said a trader based in the coffee belt.
“Farmers have nothing to offer now and most of the beans are now in exporters’ hands,” the trader said, adding trade was tepid. July robusta coffee gained $27 over the past week, settling at $2,413 as of Wednesday’s close.
In Indonesia’s Lampung province, one trader offered robusta beans at a $40 premium to the July contract, narrower than the $100 premium two weeks ago, as new bean supplies started coming in and as the benchmark prices in London increased.
Indonesian activities were muted last week for the Eid-ul-Fitr holidays. Another trader offered a $100 premium to the May and June contracts, down from $150-$160 previously as exporters still faced stiff competition with local buyers. “Local coffee companies are buying at higher prices,” the trader said.
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