HANOI: Coffee trading in Vietnam remained sluggish this week as the markets took a hit due to the months-long scarcity of beans, while activities were muted in Indonesia due to a holiday, traders said on Thursday.
Farmers in the central highlands, Vietnam’s largest coffee-growing area, sold beans at 65,400 dong to 66,900 dong ($2.77 to $2.84) per kilogramme, compared with 65,000 dong to 67,000 dong a week ago.
September robusta coffee lost $110 in a week, settling at $2,616, as of Wednesday’s close. “Price fell slightly after supportive news about Brazilian robusta supplies,” said a trader based in the coffee belt.
“However, it (price) remained high and no export deals were struck in the past weeks, just some small purchases from local roasters,” the trader added.
Cherries were growing fine with supportive weather despite concerns over the El NiNo that may hurt crops, another trader said.
Traders in Vietnam offered 5% black and broken-grade 2 robusta at a range of $167 to $200 premium per metric ton to the September contract, compared with the $$125 to $170 premium a week ago.
Coffee exports from Vietnam are estimated to have decreased 2.2% in the first half of 2023 to 1.02 million per ton from a year earlier, the equivalent of 17 million 60-kg (130-pound) bags, official data showed. Coffee export revenue rose 3% to $2.4 billion in the January-June period.
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