HANOI/BANDAR LAMPUNG: Vietnam’s coffee market stayed quiet with bids and asks far apart as buyers were unwilling to match premiums offered by sellers, while premiums rose in Indonesia on limited supplies, traders said on Thursday.
Farmers in the central highlands, Vietnam’s largest coffee-growing area, were selling beans for 64,800-66,700 dong ($2.66-$2.74) per kg, compared with last week’s 65,900-66,700 dong range. Sellers in Vietnam offered 5% black and broken-grade 2 robusta at a $200 premium per ton to the January contract.
“No buyers have ever accepted that price. It’s too high,” said a trader based in the coffee belt. “The high premium was due to the high price of past contracts.” January robusta coffee settled down $17, at $2,315 per metric ton, as of Wednesday’s close.
Another trader based in the region said planting area was down this crop season but productivity was higher due to favourable weather.
“Output may remain the same for this crop season but stormy season is coming and hopefully the weather remains this positive in November when farmers pick the beans,” the second trader said. Coffee exports from Vietnam are estimated to have decreased 7.3% in the first nine months of 2023 from a year earlier to 1.27 metric tons, equivalent to 21.6 million 60 kg (130 pound) bags, official data showed. Indonesia’s August Sumatra robusta coffee bean exports were at 16,166.17 metric tons, a decline of 55.48% on a yearly basis, trade office data showed.
Sumatra bean prices to the November contract continued to rise this week, at a $480 premium due to thin supply. “Coffee prices were up around $30 compared to last week as there were no more beans left,” one trader said. Another trader quoted $500 premium to the October contract, unchanged from last week.